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Challenges Ahead

Market Basket is still a privately held company, so exact figures are not available on the final deal to sell 50.5 percent of the company. Estimates put the transaction in the vicinity of $1.5 billion. It also appears that around two-thirds of that total is borrowed from a number of investment banks. That would mean that the company now has debt totaling more than $1 billion. To put this in perspective, a home mortgage of $1 billion at a 4 percent interest rate would require a monthly payment of about $4.7 million (more than $150 thousand per day).

“We’ve never been exposed to debt,” says Bill Marsden. “It’s something we have ...

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