Nestle SA In Talks For EUR7 Billion Acquisition Loan To Help Fund $11.85 Billion Takeover Of Pfizer, Inc.'s Nutrition-Reuters

Reuters reported that Nestle SA has been talking to banks about raising a new EUR7 billion ($8.7 billion) syndicated loan to help fund its $11.85 billion takeover of Pfizer, Inc.'s Nutrition. Nestle said in late April the acquisition would be fully debt-financed through internal cash resources, existing facilities and the bond markets. The new loan would give the company enough liquidity until the deal is approved, which is expected to be in the first quarter of 2013, if the acquisition goes ahead. The new loan is expected to have a short-term maturity of one year, with a one-year extension option, which could lead to a quick bond market refinancing, they added.