Coffee merger to use $10B in debt financing

A merger between two coffee giants is likely to be funded by at least $10 billion in debt financing, according to a person familiar with the matter.

The merger between Master Blenders 1753 BV, owner of the Douwe Egberts brand, and Mondelez International Inc. would likely be financed from leveraged loans, according to Fox Business.

Under the planned merger, Mondelez will hand over its coffee brands in exchange for $5 billion in cash and a 49 percent stake in the new company, to be called Jacobs Douwe Egberts.

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