The estimated $16 billion takeover of India's ecommerce company Flipkart Online Services Pvt. Ltd . will be paid for by at least $12.5 billion from a bond sale, insiders told the Financial Times. The article published on Wednesday adds Walmart Inc. offered debt due in two to thirty years.
The market sources revealed the packages with maturities of two and three years would include versions with fixed and floating rates. Early orders are said to have topped $38 billion, with the yield curve for the fixed rate securities ranging from 30 to 115 basis points above benchmark United States Treasuries. Special mandatory redemption, or SMR, was reportedly offered for five of the nine tranches, where additional cash would be paid by the giant retailer if the acquisition isn't closed by June 7 next year.
As part of the deal last month, Walmart has agreed to buy a stake worth in the range of $4 billion from SoftBank. Existing investors including cofounder Binny Bansal, Tencent, Tiger Global Management and Microsoft will control parts of the minority share.
