WHEN: TODAY, TUESDAY, MARCH 22, 2011
WHERE: CNBC'S "THE STRATEGY SESSION" AT 12PM ET
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.
JOE KERNEN: WE START THE SHOW WITH SOME BREAKING NEWS ON THE 40 BILLION DOLLAR DEAL BEWTEEN AT&T AND T-MOBILE. CAN WE CALL IT AT&T AND T-MOBILE. I DONT KNOW WHAT WE ARE GOING TO CALL IT KATE IF IT DOES GO THROUGH BUT YOUR AT 30 ROCK.
KELLY: ATT T-MOBILE I GUESS. I DONT KNOW JOE.
JOE: TOO MANY T'S.
KELLY: BUT ITS GOOD TO HAVE YOU IN TODAY. AND REMEMBER THAT HUGE JP MORGAN BANK LOAN WE WERE TALKING ABOUT YESTERDAY AND KIND OF SPECULATING A BIT ON WHAT THE SYNDICATION PROCESS WOULD BE. WELL WE HAVE SOME ANSWERS. JP MORGAN IS ACTUALLY PUTTING OUT FEELERS AS WE SPEAK TO FELLOW FINANCIAL INSTITUTIONS AND AT LEAST ONE OTHER LARGE BANK THAT I KNOW OF TO TRY AND SCHEDULE MEETINGS TO TALK ABOUT THE SYNDICATION PROCESS. ONE SOURCE TOLD ME THAT THESE MEETINGS COULD BE SCHEDULED FOR AS EARLY AS THIS WEEK. ANOTHER SOURCE SAYS IT WILL BE THE COMING WEEKS BUT THEY ARE STILL PUTTING THE DETAILS TOGETHER. SO ITS INTERESTING I MEAN JPMORGAN JOE HAS MADE ITS SINGLE LARGEST COMMITTMENT EVER TO A CLIENT WITH THIS 20 BILLION DOLLAR DEAL AND RAISED A LOT OF EYEBROWS YESTERDAY. IT OBVIOUSLY IS DOING WELL HAS A BIG BALANCE SHEET GREAT LENDING CAPACITY SO IT CAN DO THIS. BUT ON THE OTHER HAND THERE ARE A LOT OF QUESTIONS ABOUT WHETHER REGULATORS WILL SIGN OFF ON THIS MERGER AND IT IS A BIG CHUNK OF CHANGE IN TERMS OF BALANCE SHEET RISK SO IT MAKES ALL THE SENSE IN THE WORLD THAT THEY WANT TO SHARE IT WITH SOME PARTNERS. NOW YESTERDAY WE HAD THE CO-HEAD OF M&A FROM JPMORGAN AND ONE OF THE KEY ARCHITECTS OF THE DEAL IS THEIR FINANCIAL ADVISOR ON THE SHOW, JIM WOOLERY. WE ASKED HIM ABOUT EXACTLY THIS. HERE IS WHAT HE HAD TO SAY:
(TAPE) WOLLERY: THIS ISNT THEIR FIRST RODEO AT AT&T AND THEY HAVE ENORMOUS FINANCIAL WISDOM AND CAPABILITY WE'LL BE THERE AS A PARTNER AND WORK WITH THEM IN TERMS OF HOW THEY WANT TO SYNDICATE THIS FINANCING SO WE ARE GOING TO BE DOING THIS AS PARTNERS BUT IN A CONSULTATION WITH THEM AND I THINK IT WILL BE DONE OPPORTUNISTICALLY AND WHATS IN THE BEST INTEREST OF AT&T...
KELLY: SO YOU HAVENT MADE A FINAL DECISION ON THAT YET?
WOOLERY: WE HAVE NOT
KELLY: SO JOE JUST TO RECAP I MEAN JIM WAS TELLING US THAT HE IS GOING TO WORK WITH AT&T ON THIS AND I THINK THATS STILL THE CASE AS IS MY UNDERSTANDING BUT IN ANY CASE THERE PUTTING OUT SOME FEELERS AND JUST IN TERMS OF THE TERMS OF THE BRIDGE LOAN A FEW PEOPLE HAVE BEEN CONFUSED BY THIS ESSENTIALLY IT WILL KICK IN IF AND WHEN THE DEAL CLOSES CONSERVATIVELY GUESSING JPMORGAN SAYING HEY LETS HAVE THIS AVAILABLE FOR 18 MONTHS IN CASE IT TAKES THAT LONG OF COURSE THEIR CONFIDENT IT WILL BE APPROVED. AND THEN WHENEVER THAT CLOSING DATE OCCURS IT WILL BE A 12 MONTH BRIDGE LOAN. BUT OF COURSE THEY ARE ALREADY TAKING STEPS JOE TO MAKE SURE THE RISK IS SHARED.
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