Broadcom Gets $28.4B Loan For Acquisition Of VMware

Broadcom Inc. AVGO has secured up to $28.39 billion in new debt commitments to acquire Vmware, Inc VMW. Broadcom's proposed $61 billion buyout of VMware is under the scanner of multiple regulatory watchdogs. 

According to a company filing, the term facilities consist of a $10.69 billion term loan, a $7 billion term loan, and another $10.69 billion term loan.

The loans may be increased by up to $2 billion fifteen business days after the Funding Date. 

Also Read: Broadcom CEO Prepares To Allay Concerns Of EU Regulators Over VMware Deal

U.K.'s antitrust regulator gave the AVGO-VMW merger deal interim clearance in July while it is still waiting for the approval of the U.S. Federal Trade Commission.

The deal would further Broadcom's push into software, nearly tripling the size of the company's software division.

Bank of America, N.A. is acting as the administrative agent for the agreement.

Price Action: AVGO shares are trading lower by 1.44% to $815.21 on the last check Friday.