GKN takes £500m bridge for Volvo Aero takeover
UK engineering firm GKN’s Skr6.9bn (£633m) takeover of Volvo Aero will be partly financed by a £500m 18 month bridge loan, which is expected to be swiftly taken out in the bond market.
The remainder of the acquisition financing for the Ba1/BB+/BBB- rated UK firm will be found from a £140m placing of new ordinary shares — approximately 5% of GKN’s current market capitalisation. JP Morgan and UBS are leading the share placement as bookrunners.
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