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Kohlberg Kravis Roberts & Co. announced that...

Kohlberg Kravis Roberts & Co. announced that it had obtained commitments for all of the $14.5 billion in bank loans that it needs to help finance its $24.53-billion takeover of RJR Nabisco Inc. The company declined to name the banks involved, but 10 Japanese institutions are believed to be lending Kohlberg Kravis a total of $5.1 billion for the leveraged buyout. Kohlberg Kravis will also be floating “junk bond” issues to help finance the deal, the biggest corporate takeover ever. In a leveraged buyout, investors borrow heavily to buy out a company and then pay off the debt with the target company’s cash flow or the sale of its assets.


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