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What do you believe was the purpose of the $1.5 billion senior secured revolving loan facility,...

What do you believe was the purpose of the $1.5 billion senior secured revolving loan facility, and the $2.1 billion second lien bridge loan facility as part of the deal financing package? How will the investors be able to recover the 20% purchase price premium?

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The loan constituted of $8 billion senior secured loan, $1.5 billion senior secured revolving loan facility, and the $2.1 billion second lien bridge loan. The revolving loan facility availed was meant to allow Heinz company to repay, draw down, and redraw loans that are advanced to it. We believe that after merging, Heinz will have low business risk and better expectation from shareholders. It has a sustainable growth rate and a good P/E ratio. These are the reasons why senior loan is available for them as the risk involved is much lesser

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