Barclays Capital, Citigroup Inc. and Credit Suisse Group were said Tuesday to have committed $2 billion in financing for BlackRock Inc.'s purchase of the Barclays Global Investors business.
BlackRock agreed last week to buy the indexing giant from Barclays PLC for $13.5 billion.
The financing is structured as a 364-day revolving credit facility, which is expected to be refinanced through the proceeds of debt offerings as well as any capital-raising effort, according to one of several people familiar with the transaction.
The financing, which is expected to close in the fourth quarter, would give Barclays a 19.9% stake in BlackRock.
As a result, Barclays is supplying the bulk of the $2 billion revolver, this person said.
Another person said that Barclays would stump up $1.2 billion of the total amount, with Citigroup and Credit Suisse providing the remainder. Both Citi and Credit Suisse were lead financial advisers to BlackRock.
A spokesman for BlackRock was not immediately able to comment on the financing. The transaction is subject to approval by Barclays shareholders and regulators.
