Broadcom Lines Up Biggest Debt Financing Ever for Qualcomm

Broadcom Lines Up Biggest Debt Financing Ever for Qualcomm

Broadcom has lined up as much as $106 billion of debt financing to back its proposed acquisition of Qualcomm, winning what would be the biggest corporate loan on record at a precarious time for credit markets, according to Bloomberg.

As much as $100 billion of the funding would be provided by a group of 12 lenders including Bank of America and JPMorgan, Broadcom said in a statement, a record loan financing. The banks provided a firm commitment to fund the deal, a step up from their previous agreement that allowed them to back out if markets were seizing up.

Now banks appear to be on the hook for the funding if the deal goes through, just as credit markets are showing early signs of strain. The U.S. junk bond markets just had their worst week in two years, and investment-grade corporate debt has been weakening all year. Broadcom is rated one step above speculative grade.

The financing package includes $100 billion of bank loans, including a $5 billion revolving credit facility. The other banks providing the debt commitment are: Citigroup, affiliates of Deutsche Bank, Mizuho Financial Group, Mitsubishi UFJ, Sumitomo Mitsui Financial Group, Wells Fargo, Bank of Nova Scotia, Bank of Montreal, and Royal Bank of Canada and Morgan Stanley.

A group of investment funds affiliated with Silver Lake, KKR & Co. and CVC Capital Partners, agreed to include $6 billion of convertible note financing, Broadcom said in its statement.

The previous record for a loan was set by Anheuser-Busch InBev in 2015 when it raised $75 billion to back its acquisition of SABMiller. That loan was then repaid via further debt raisings, largely in the bond market.

More from category

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

24 Feb 2018 comment

Celebrities are powerful magnet on social networks, but can also cost them a lot of money as well. According to Bloomberg, Snap, parent company of Snapchat, lost a lot of market value thanks to just one celebrity tweet.

Ericsson Nikola Tesla Marks Solid Results in 2017

Ericsson Nikola Tesla Marks Solid Results in 2017

24 Feb 2018 comment

In 2017, Ericsson Nikola Tesla Group sales revenue amounted to million 1,481.6 kuna, 6.9% lower year-over-year. Of the total sales revenue, the domestic market accounts for 18.7%, services to Ericsson account for 62.5% (of which 12.1% relates to Managed Services in Croatia), while other export markets participate with 18.8%. Sales in the Networks segment amounts to MHRK 739.3 (2016.: MHRK 806.5), Digital Services segment amounts to MHRK 559.6 (2016.: MHRK 593.1), Managed Services segment amounts to MHRK 178.9 (2016.: MHRK 185.9) and segment Other amounts to MHRK 3.8 (2016.: MHRK 6.1).

Rovio Dragged Out of Silence After Stock Is Sold Off

Rovio Dragged Out of Silence After Stock Is Sold Off

23 Feb 2018 comment

The company behind the Angry Birds game, Rovio, is struggling to stop investors walking out, according to Bloomberg.