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Walmart Raises $5B Revolving Credit to Fund Flipkart Deal

Revolving facility is an arrangement that allows the buying company to facilitate the immediate acquisition financing requirements

Walmart is raising $5 billion revolving credit from several financial firms, including JPMorgan Chase and Barclays, to fund its $16-billion acquisition of e-commerce giant Flipkart. 

The credit line will be one of the largest revolving credit facilities of recent times and is priced at 300-400 basis points over LIBOR (London Interbank Offered Rate). The facility amount is secured against the balance sheet of Flipkart and its shares and will have a tenure of 18 months. 

Revolving facility is an arrangement that allows the buying company to facilitate the immediate acquisition financing requirements and the loans are secured against the balance sheet of the target company and its share price.

Just yesterday, Walmart has officially announced the acquisition of Flipkart. And after Flipkart-Walmart deal, eBay has decided to end its strategic partnership with Flipkart and intends to sell its holdings of 6.55% in Flipkart, worth around $1.1 billion, and planning to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity.


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walmart Revolving Credit acquisition flipkart

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