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US: Broadcom gets record US$100 b loan for Qualcomm buy

By  |  February 12, 2018

US chipmaker Broadcom has agreed record-breaking syndicated loans of up to US$100 billion with 12 banks to finance its proposed US$121 billion acquisition of Qualcomm, the company reported The Financial Times.

The jumbo loan package is the biggest committed credit facilities since global brewer AB InBev’s US$75bn loan in 2015 which backed its acquisition of rival SABMiller.

A group of 12 banks have agreed to provide Broadcom with up to US$100 billion in credit facilities, including a $5 billion revolving credit facility and bridge financing.

The loans include a bridge financing and a US$5 billion revolving credit facility. Silver Lake, KKR and CVC have also agreed to provide US$6 billion of convertible bond financing to Broadcom.

The financing package covers the cash component of the acquisition and post-closing working capital needs, including restructuring at the combined companies.

Full Content: Financial Times

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