>>> Shire bidder Takeda notifed by JPMorgan-led banking group of intention to of

Shire bidder Takeda notifed by JPMorgan-led banking group of intention to offer JPY 3trn loan to finance deal - report (translated)
07 MAY 2018
A group of US and Japanese banks led by JPMorgan has notified Takeda Pharmaceutical Co., Ltd. [TYO:4502] of its intention of offering a loan totaling about JPY 3trn (USD 27.5bn) to finance the Japanese pharmaceutical firm's planned takeover offer to acquire Shire plc [LON:SHP], the Nihon Keizai Shimbun reported.
The banking group includes Sumitomo Mitsui Financial Group, Inc. [TYO: 8316] and Mitsubishi UFJ Financial Group Inc. [TYO: 8306], the Japanese newspaper report said on 3 May, without citing sources.
The banks have sent commitment letters to Takeda for the loans, which will be primarily short-term bridging loans that could be converted to longer-term loans, or could be repaid with an issue of corporate bonds, the newspaper report said.
If implemented, the aggregated size of the loans will be one of largest syndicated loans ever offered in a deal involving Japanese banks, the report added.
Takeda is offering Shire GBP 46bn to acquire all the issued shares of the Island-based pharmaceutical firm in a deal to be financed with a combination of cash on hand and new shares to be issued, according to the report. The necessary cost, including Shire's interest-bearing debt, will amount to about JPY 8.5trn, the report explains.
To materialise the deal, Takeda needs cash of about JPY 3trn, most of which is expected to be financed through bank borrowings, according to the report.
Takeda as of 31 December last year had about JPY 1.1trn in debt, and the amount is estimated to increase to exceed JPY 4trn with the new loans, the report added.