Kraft seeks $4bn to pay for Cadbury

KRAFT, the US food group, will raise at least $4bn (£2.5bn) in the debt markets to fund its £11.7bn acquisition of UK rival Cadbury, according to people close to the matter.

The fundraising will consist of four tranches, each at least $1bn in size. The tranches will have maturities of 3¼, 6, 10 and 30 years with fixed-rate coupons. Kraft is also believed to be poised to sell more debt in foreign currencies.

Citigroup, BNP Paribas, Deutsche Bank, HSBC and Royal Bank of Scotland will act as book-runners for the sale.

Also yesterday, Cadbury’s three top directors yesterday confirmed their intention to step down from the firm after

Kraft finally won its battle for control of the chocolatier. Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer Andrew Bonfield all said they would stand down, as they wished Kraft well and thanked colleagues for a spirited defence of the hostile bid. The trio have yet to set their departure dates.