Xerox Holding Corporation has arranged $ 24 billion loans with a bank group as it continues pursuit of HP Inc. The largest bridge loan in the technology sector, surpassing International Business Machines Corp.’s $20 billion facilities in 2018 for its acquisition of Red Hat Inc., as per media reported.  The ranking excludes from bridge loan $51.2 billion bridge loan, which was a major part of $100 billion debt financing for failed Broadcom Inc. takeover of Qualcomn Inc. This deal was blocked by President Donald Trump.
The Xerox Bridge is also the first jumbo acquisition financing to emerge in the investment-grade loan market this year, which will be the welcome news to banks hoping for more merger activity in 2020 after the pipeline of dwindled planned in last year. Xerox last raised a $2.5 billion bridge loan in 2018 for its purchase of Japan’s Fujifilm with a margin of Libor plus 1.375 per cent. It carried higher ratings of Baa3 from Moody’s and BBB- from S&P at the time.
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