KRAFT
KRAFT has enlisted a syndicate of banks to agree to a £5.5bn credit facility to finance the cash portion of its bid and go towards paying down some of Cadbury’s debt, should the bid succeed.
Citigroup Global Markets, Deutsche Bank Securities and HSBC Securities served as joint bookrunners, while Citibank and Deutsche Bank Cayman Islands Branch served as co-administrative agents.
The banks participating in the new credit facility are: Citibank, Deutsche Bank AG – Cayman Islands Branch, Deutsche Bank AG – London Branch, HSBC Bank USA, Barclays Bank, Banco Bilbao Vizcaya Argentaria, BNP Paribas, Credit Suisse AG – Cayman Islands Branch, Royal Bank of Scotland and Societe Generale.
Fittingly for one of the largest M&A deals in the year to date, Kraft and Cadbury have appointed an army of advisers to stand behind them – a move which analysts say could cost the two firms upwards of $88.79m in fees
US consumer brands giant Kraft has enlisted Lazard, Deutsche Bank and Citigroup on the corporate broking side, with the chairman of Deutsche’s corporate broking business James Agnew and the co-head of the UK European capital markets and broking business at Citigroup David James taking the lead.
Kraft’s takeover process was dealt a blow last month when Bruce Wasserstein, Lazard’s chairman and lead adviser to the company, died unexpectedly.
Kraft has also appointed three big hitters on the financial advisory side: Robert Pruzan, the co-founder of Centerview Partners; Leon Kalvaria, Citigroup’s head of consumer and healthcare investment banking; and Nigel Meek, head of UK investment banking at Deutsche Bank.
And aside from the banking division Kraft has enlisted the services of Ernst & Young’s Michel Driessen and Clifford Chance partners Sarah Jones, Guy Norman and Rob Crothers.
Cadbury is taking advice from Goldman Sachs’ Karen Cook; UBS joint heads of UK investment banking Nick Reid and Tim Waddell, along with one of the bank’s most senior M&A bankers, James Robertson; Morgan Stanley’s co-chair of global M&A Simon Robey; and Slaughter and May’s M&A head Stephen Cooke.