(Bloomberg) -- Siemens AG has secured a $10.5 billion bridge loan facility to fund its largest-ever acquisition for software maker Altair Engineering Inc.
The facility is set to be syndicated out to more than 10 of Siemens’ relationship banks, after being initially 100% underwritten by Goldman Sachs Group Inc., according to people familiar with the matter, who asked not to be identified as the information is not public.
The Siemens acquisition will pay Altair investors $113 a share, with the transaction expected to close in the second half of next year. The bridge loan is one of the biggest Goldman Sachs has committed to in recent years, the people added.
Spokespeople for Siemens and Goldman Sachs declined to comment.
The loan comes at the end of a lackluster year for the investment-grade market. While volumes are slightly up compared to 2023, the number of transactions has fallen by 18%, according to Bloomberg League table data. Bankers have been eagerly awaiting the revival of merger and acquisition activity, and have been biding their time with refinancing deals.
The size of the loan is not far off the biggest of the year in Europe, which was Danish transport company DSV A/S’s €14 billion ($14.7 billion) for its takeover of DB Schenker. That was provided by BNP Paribas SA, Danske Bank A/S, HSBC Holdings Plc and Nordea Bank Abp, according to data compiled by Bloomberg.
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