TXT – Textron Stock Up on Beechcraft Acquisition

by Karl Utermohlen | December 27, 2013 1:03 pm

Textron stock is up 1.25% as the company announced plans to borrow $1.1 billion for its Beechcraft acquisition.

Textron stock[1]
Source: Flickr[2]

JP Morgan Chase (JPM[3]) will help Textron (TXT[4]) out in financing the deal[5] 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.

  1. [Image]: http://investorplace.com/wp-content/uploads/2013/12/Textron.jpg
  2. Flickr: http://www.flickr.com/photos/sctvc/6217243008/sizes/l/
  3. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  4. TXT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TXT
  5. financing the deal: http://www.businessweek.com/news/2013-12-27/textron-seeking-1-dot-1-billion-financing-for-beechcraft-purchase

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