Abbott Laboratories inks 2025's largest bridge loan to finance acquisition

Abbott Laboratories has teed up the largest high-grade bridge loan this year — a $20 billion facility from Morgan Stanley — to fund its acquisition of Exact Sciences Corp.

The facility is for 364 days, according to people with knowledge of the transaction who asked not to be identified. It’s one of the largest sole committed financings of the past decade.

The bridge loan is also the largest among investment-grade borrowers for an acquisition since last August 2024, when Mars Inc. secured $29 billion for its purchase of Kellanova. Morgan Stanley led two other large bridge loans this year, which funded Keurig Dr Pepper Inc.’s $18 billion purchase of JDE Peet’s and Baker Hughes $9.6 billion acquisition of Chart Industries Inc.

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Hyperscalers like Meta Platforms Inc., Alphabet Inc., and Oracle Corp. have tapped the high-grade market in recent months to borrow billions of dollars to fund AI-related growth. Abbott will have to compete for long-term financing in this crowded market.

The medical-device maker expects to maintain an investment-grade rating, according to a presentation to investors.