Aetna bridge is second biggest this year

摘要

Health insurer aetna is lining up a US$16.2bn bridge loan to fund its acquisition of smaller rival Humana, which is the first multi-billion M&A loan of the second half of 2015 and the second largest acquisition bridge loan so far this year. Aetna is buying Humana for US$37bn in cash and stock in the insurance industry's largest ever acquisition. The deal will boost third-quarter investment-grade loan issuance and support expectations that a surplus of corporate cash is contributing to a growing pipeline of M&A transactions. Investment-grade M&A-related lending totalled US$63bn in the first half of the year. 2015 totals could reach US$200bn, based on the pipeline of financings building in the second half of the year, according to a lender survey by Thomson Reuters LPC. Citigroup and UBS are providing the 364-day senior unsecured bridge facility. The bridge loan is expected to be taken out with permanent financing that could include a mix of term debt, bonds and commercial paper. Citigroup and UBS are currently syndicating a US$3.2bn three-year term loan.