Broadcom said in a statement Monday that most of the financing will be provided by 12 banks such as Bank of America and JP Morgan, while investment funds such as Silver Lake, KKR and CVC agree to provide $ 6 billion through convertible bonds, The debt commitment is sufficient to cover the cash portion of Qualcomm's $ 82 bid per offer.
The previous acquisition financing record was set up by Anheuser-Busch InBev in 2015 when the company raised $ 75 billion to acquire SABMiller Plc, which was then repaid through further debt financing, primarily for issuing bonds.
Broadcom first made a $ 105 billion offer to Qualcomm in November and was quickly rejected by the target company, which was then backed by a financing package in which banks said they are "very confident" to be able to arrange this in the bond market Pen financing.
Hock Tan, chief executive, said the new $ 121 billion bid was 'best and final bid.' It is especially important that the bid is backed by financing commitments, as the bond market has become unpredictable in recent weeks.
Qualcomm shareholders will decide next month whether to replace their board with Broadcom's nominee, which will determine the future fate of the deal, which Qualcomm said on Thursday said it "seriously undervalues Qualcomm and is far from reaching Regulatory approval required by the authorities).
Broadcom said debt financing will come in the form of bridge loans and a $ 5 billion revolving credit line Other banks that offer loans include Citigroup, Deutsche Bank, Mizuho, Mitsubishi UFJ, Sumitomo Mitsui, Wells Fargo, Morgan Stanley, Scotiabank, Montreal and Royal Bank of Canada.