“Toshiba Secures US$10.6 Billion Loan After Attracting Bids From Investors”
(Bloomberg) – Japan’s top banks will issue commitments for a 1.4 trillion yen (US$10.6 billion) loan to support the takeover bid by a consortium led by Japan Industrial Partners Inc. for Toshiba Corp. underpinned, according to those familiar with the matter.
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Lenders, including Sumitomo Mitsui Financial Group Inc., have agreed to release the letters this week, said the people, who asked not to be identified because the information is private. The banks continue to demand leadership positions in Toshiba management for their representatives should there be a takeover, it said.
Sumitomo Mitsui will commit to lending about 515 billion yen, while Mizuho Financial Group Inc. will offer loans of 460 billion yen, the people said. Sumitomo Mitsui Trust Holdings Inc., Mitsubishi UFJ Financial Group Inc. and Aozora Bank Ltd. are also participating in the loan, they added. Bank and JIP officials declined to comment.
Securing financing backing from banks is a crucial step in the proposed acquisition of Toshiba, one of Japan’s best-known companies spanning the JIP-led consortium with businesses ranging from nuclear reactors to power grids and refrigerators.
The lenders initially wanted to sign the syndicated loan by the end of December. Those negotiations had previously stalled due to issues like agreements and collateral, Bloomberg News reported. Discussions resumed in the new year, despite extending the deadline last week, people familiar with the matter said.
JIP was also in talks for about 1 trillion yen in funding from 20 potential co-investors including chipmaker Rohm Co. and financial services firm Orix Corp., Bloomberg News reported.
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