In Brief : Japanese Banks Aid RJR Buyout
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TOKYO — Ten Japanese banks will lend a total of $5.1 billion to help finance U.S.-based Kohlberg Kravis Roberts & Co.’s buyout of RJR Nabisco Inc., a bank official said today.
The loan, believed to be the largest ever by Japanese banks for such a transaction, was in line with industry expectations.
The official who provided the figure insisted on not being identified by name or bank, although his bank is one of the 10 involved in the deal.
KKR will be using a total of $14 billion in bank loans to finance its record $24.53-billion buyout of RJR Nabisco.
Henry Kravis, principal partner of KKR, has been meeting with several large Japanese banks here and in the United States over the past few weeks.
Most of the 10 Japanese banks that will participate in the worldwide bank consortium reportedly approved their loans by Jan. 6, the deadline for receiving higher incentive returns.
Mitsubishi Bank confirmed it had notified KKR by Jan. 6 of its intention to offer a loan, but a bank official, speaking on condition that he not be named, declined to specify the amount.
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