The $20 billion bridge loan JP Morgan provided to AT&T in order to help cement its planned purchase of Deutsche Telekom’s T-Mobile USA unit is the largest commitment the bank has ever made to a client, according to people at the firm.
But that’s just one of the ways in which the cash-and-stock deal could make market history.
It’s not only JP Morgan that is taking enormous balance-sheet risk, at least in the short term, as part of the deal. Its client, AT&T has also agreed to pay a hefty penalty if the acquisition falls through—one of the largest in megadeal history.