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China Daily Website

Shuanghui International Holdings gets $7.9b loan

Updated: 2013-06-19 21:25

Shuanghui International Holdings Ltd received a $7.9 billion financing from Bank of China, New York Branch and Morgan Stanley for its purchase of Smithfield Food Inc.

Bank of China will provide a $4 billion fixed loan to Shuanghui for the acquisition of Smithfield, while Morgan Stanley Senior Funding Inc will provide $3.9 billion to repay Smithfield's debt, according to a filing made by Smithfield to the United States' Securities and Exchange Commission on Tuesday.

The acquisition valued Smithfield at $7.1 billion, including debt. Shuanghui plans to build a leading global pork company after combining Smithfield.

In addition to the financing, Morgan Stanley will also provide a $750 million revolving loan, a $1.65 billion fixed loan and a $1.5 billion stopgap loan, the filing said.

The loans from Morgan Stanley will be primarily used to repay debt.