February 12, 2018 / 1:08 PM / a year ago

Broadcom gets record $100 billion loan for Qualcomm buy

FILE PHOTO: A sign on the Qualcomm campus is seen in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake/File Photo

LONDON (Reuters) - US chipmaker Broadcom (AVGO.O) has agreed record-breaking syndicated loans of up to $100 billion with 12 banks to finance its proposed $121 billion acquisition of Qualcomm (QCOM.O), the company said on Monday.

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

BofA Merrill Lynch, Citigroup, Deutsche Bank, JP Morgan, Mizuho, MUFG, SMBC, Wells Fargo, Scotiabank, BMO Capital Markets, RBC Capital Markets and Morgan Stanley are providing the loans.

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

Editing by Tessa Walsh

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