Broadcom secures $28.4B term loan facilities to fund VMware acquisition

Broadcom Inc.

Three unsecured term loan facilities: Term A-2 ($10.7B, 2-yr), A-3 ($10.7B, 3-yr), A-5 ($7B, 5-yr).
Interest at Base Rate or Term SOFR plus margin based on Broadcom's credit ratings (Pricing Level 1-5).
Financial covenant requires Consolidated Interest Coverage Ratio ≥ 2.00:1.00 measured quarterly after funding.
Broadcom terminated the prior $32B senior unsecured bridge facility committed for the acquisition.
Up to $2B increase allowed within 15 business days after the funding date.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Broadcom Inc. entered into Credit Agreement with the lenders named therein, Bank of America, N.A., as administrative agent, and the other parties from time to time party thereto valued at up to $28,390,625,000 (effective 2023-08-15).

Action: entry
Agreement: credit facility
Counterparty: the lenders named therein, Bank of America, N.A., as administrative agent, and the other parties from time to time party thereto
Value: up to $28,390,625,000
Effective: 2023-08-15

Exact text from the filing

On August 15, 2023 (the "Effective Date"), Broadcom Inc., a Delaware corporation ("Broadcom"), entered into a Credit Agreement with the lenders named therein, Bank of America, N.A., as administrative agent, and the other parties from time to time party thereto (the "Credit Agreement").

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Source: SEC EDGAR

accession 0001140361-23-040084

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