JAB Said to Plan $4.3 Billion of Loans for Master Blenders Deal

Joh. A. Benckiser plans to finance its acquisition of D.E Master Blenders 1753 NV (DE) with about 3.3 billion euros ($4.3 billion) of debt facilities, according to four people with knowledge of the transaction.

The debt comprises about 3 billion euros of term loans, split between three- and five-year portions, and a 300 million- euro credit line, said the people, who asked not to be identified because the deal is private. Bank of America Corp., Citigroup Inc., Morgan Stanley and Rabobank International are arranging the transaction and meetings with additional lenders may take place on April 25 in London.

Sabine Post, an Amsterdam-based spokeswoman for JAB, said the company doesn’t comment on market rumors.

JAB, the investment arm of the billionaire Reimann family, agreed to buy the Senseo maker for about 7.5 billion euros in the coffee industry’s biggest deal ever. The transaction is subject to shareholders controlling 95 percent tendering their shares and may be completed at the end of July or beginning of August, Jan Bennink, JAB’s interim chief executive officer, said earlier this month.

The acquisition is also being funded with 4.9 billion euros of equity, the company has said.

To contact the reporters on this story: Patricia Kuo in London at pkuo2@bloomberg.net; Julie Miecamp in London at jmiecamp@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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