Broadcom Secures Financing for Qualcomm Bid
February 12, 2018
has signed committed financing agreements to fund its proposed
acquisition of Qualcomm.
A group of 12 financial institutions have agreed to provide up
to $100 billion of committed credit facilities, including a $5
billion revolving credit facility and bridge financing, and
investment funds affiliated with Silver Lake , KKR and CVC have
agreed to provide $6 billion of convertible note financing to
Broadcom to fund the transaction and post-closing working
capital needs, including restructuring activities, at the
combined companies. As a result, the Company has sufficient
committed financing to fully fund the $60 per share cash
component of its $82 per share offer to acquire all of the
outstanding shares of Qualcomm .
The financial institutions that will provide the credit
facilities and bridge financing for the transaction are BofA
Merrill Lynch, Citigroup , affiliates of Deutsche Bank AG , J.P.
Morgan, Mizuho, MUFG, SMBC, Wells Fargo , Scotiabank, BMO
Capital Markets , RBC Capital Markets and Morgan Stanley .
" Silver Lake is pleased to extend its partnership with Broadcom
by making a major new commitment to an important combination
that will create substantial value across the technology
landscape and for investors in both companies," said Kenneth Hao,
Managing Partner at Silver Lake .
"After having successfully invested with Hock and the Company
previously, we are excited to partner again. We have a lot of
respect for what they can accomplish and look forward to
supporting them on this next phase of value creation," said Joe
Bae, Co-President and Co-COO of KKR.
is excited to partner with Broadcom during its next stage of
growth, driven by increasing demand for bandwidth across the
mobile and data center sectors," said Chris Colpitts, TMT head
for CVC Capital Partners in the US.
Latham & Watkins LLP , Simpson Thacher & Bartlett LLP and
Wachtell, Lipton, Rosen & Katz are acting as legal counsel for
Cahill Gordon & Reindel LLP is acting as legal counsel to the
financial institutions providing the credit facilities and