Textron stock is up 1.25% as the company announced plans to borrow $1.1 billion for its Beechcraft acquisition.
JP Morgan Chase (JPM) will help Textron (TXT) out in financing the deal that will help the company acquire planemaker Beechcraft. About half of the financing will be part of a five-year, pre-payable bank loan. The other half will be financed with a bond and the total debt will have an interest rate of somewhere in the neighborhood of 3.75%.
The Beechcraft transaction will cost Textron a total of $1.4 billion. Textron stock has had a good year that’s seen shares go up 48% YTD and over 10% in the last month alone.