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Broadcom Secures Financing for Qualcomm Bid

February 12, 2018

Broadcom has signed committed financing agreements to fund its proposed acquisition of Qualcomm.

A group of 12 financial institutions have agreed to provide up to $100 billion of committed credit facilities, including a $5 billion revolving credit facility and bridge financing, and investment funds affiliated with Silver Lake , KKR and CVC have agreed to provide $6 billion of convertible note financing to Broadcom to fund the transaction and post-closing working capital needs, including restructuring activities, at the combined companies. As a result, the Company has sufficient committed financing to fully fund the $60 per share cash component of its $82 per share offer to acquire all of the outstanding shares of Qualcomm .

The financial institutions that will provide the credit facilities and bridge financing for the transaction are BofA Merrill Lynch, Citigroup , affiliates of Deutsche Bank AG , J.P. Morgan, Mizuho, MUFG, SMBC, Wells Fargo , Scotiabank, BMO Capital Markets , RBC Capital Markets and Morgan Stanley .

" Silver Lake is pleased to extend its partnership with Broadcom by making a major new commitment to an important combination that will create substantial value across the technology landscape and for investors in both companies," said Kenneth Hao, Managing Partner at Silver Lake .

"After having successfully invested with Hock and the Company previously, we are excited to partner again. We have a lot of respect for what they can accomplish and look forward to supporting them on this next phase of value creation," said Joe Bae, Co-President and Co-COO of KKR.

"CVC is excited to partner with Broadcom during its next stage of growth, driven by increasing demand for bandwidth across the mobile and data center sectors," said Chris Colpitts, TMT head for CVC Capital Partners in the US.

Advisors
Latham & Watkins LLP , Simpson Thacher & Bartlett LLP and Wachtell, Lipton, Rosen & Katz are acting as legal counsel for the Company.

Cahill Gordon & Reindel LLP is acting as legal counsel to the financial institutions providing the credit facilities and bridge financing.

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