A syndicate of banks led by Barclays has launched a $1.5bn leveraged loan to finance Silver Lake’s acquisition of a majority stake in Intel’s programmable chip subsidiary, Altera, according to a report by Bloomberg citing a source familiar with the transaction.
The financing supports Silver Lake Management’s deal to acquire 51% of Altera from Intel Corporation, a transaction announced in April that values the business at $8.75bn. Intel will retain a 49% minority interest under the terms of the agreement.
The deal enters a buoyant leveraged loan market in the US, which saw its busiest week since late February, with 25 issuers coming to market for purposes ranging from dividend recaps to M&A and refinancing.
Citigroup, RBC Capital Markets, and Deutsche Bank are also part of the arranging group, the source said. A lender call is scheduled for 9 June, with commitments due by 18 June.
The move underscores the continued role of private credit and traditional leveraged finance in facilitating high-profile private equity transactions, particularly in the technology sector.
