Allen & Overy has advised the lead banks on a USD25bn acquisition loan facility, to back the USD49.4bn acquisition of the 57.8% stake British American Tobacco (“BAT”) does not already own in US peer Reynolds American Inc.
Across its London, New York and Dutch offices, Allen & Overy advised the banks on the syndicated facility which was put in place to support the USD24.4bn cash component of the transaction. The financing was co-ordinated by Deutsche Bank and HSBC and was successfully syndicated last week. In addition, British American Tobacco has signed new forward starting revolving credit facilities of GBP5.68bn to accommodate the liquidity needs of the enlarged BAT group.
Leading the deal, A&O partner Greg Brown said: “This is one of the largest syndicated loan financings in the European markets in recent years. It shows that, despite wider market uncertainty, the European loan markets continue to have impressive depths of liquidity that can be brought to bear quickly and effectively for the right deals.”
Ben Myers and Megan Betts supported Greg Brown on the deal. British American Tobacco were advised on the financing by Herbert Smith Freehills, with a team led by Will Nevin.