Japan's Takeda Pharmaceutical Co. Ltd. entered a credit agreement for up to $7.5 billion in term loans to help fund its planned £46 billion acquisition of Shire PLC.
Besides the cash consideration for the Dublin-based drugmaker, borrowings under the agreement will also be used to refinance a portion of the $30.85 billion bridge loan Takeda secured May 8.
J.P. Morgan Chase Bank NA, Sumitomo Mitsui Banking Corp., MUFG Bank Ltd. and Mizuho Bank Ltd. are among the participants in the heavily subscribed credit agreement.
The Shire purchase remains subject to shareholder approval, Takeda said in a news release.
Shareholders owning over 1% of the company recently launched a campaign against the acquisition, concerned about the debt load Takeda would bear, according to a report.
Takeda expects a profit drop in 2019 as it works to repay the loans.
