The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close by the end of calendar year 2010.
GMCR intends to finance the acquisition through a combination of cash on hand and US$1.35bn of new debt financing comprising:
These facilities will be utilised to finance this acquisition and transaction expenses, as well as to refinance GMCR’s existing outstanding indebtedness and support ongoing growth. The company has secured a financing commitment for the transaction from BofA Merrill Lynch and SunTrust Robinson Humphrey Inc.
GMCR anticipates that the acquisition will be neutral to slightly dilutive to its earnings per share in the first 12 months after closing and accretive thereafter.
Source: Green Mountain Coffee Roasters
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