Macquarie Group Ltd. has secured a A$6 billion ($4.4 billion) loan from five banks to fund its acquisition of Australia & New Zealand Banking Group Ltd.’s Esanda motor dealer finance business, people familiar with the matter said.
ANZ, Barclays Plc, Bank of America Merrill Lynch, HSBC Holdings Plc and JPMorgan Chase & Co. have committed A$1.2 billion each to the bridge loan, according to the people, who asked not to be identified because they’re not authorized to speak. Macquarie’s Sydney-based spokeswoman Lisa Jamieson declined immediate comment.
Macquarie, which said Oct. 8 it will buy the ANZ business for A$8.2 billion, is funding the transaction through a combination of debt and equity. It said it will need A$800 million in initial capital for the acquisition and has raised half of that through a share sale to institutions.
The Esanda acquisition builds on Macquarie Chief Executive Officer Nicholas Moore’s strategy of focusing on businesses that shelter the firm from the boom-and-bust cycle of investment banking. Macquarie will face competition in vehicle financing from Westpac Banking Corp. and finance companies aligned with automakers.
Macquarie shares were down 0.6 percent at A$81.83 at 3:07 p.m. in Sydney while the benchmark S&P/ASX200 index was unchanged.