Bank of China and Morgan Stanley have combined to provide $7 billion of loans to finance Shuanghui International's record deal to buy US pork producer Smithfield Foods, people familiar with the matter said.
The total value of the Chinese company's record agreement was $7.1 billion, including net debt, according to the deal's announcement on Wednesday. But the companies did not offer details on how Shuanghui financed the deal.
According to the people familiar with the matter, Bank of China has provided up to $4 billion in financing to Shuanghui, in a five-year term loan, and will syndicate the facility.
Morgan Stanley is adding $3 billion in a term loan as well, they said, and will also sell down the amount.
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