Xerox Corporation announced that it has closed a $1 billion senior unsecured term loan, to be drawn by April 1, 2016. The loan was arranged by a syndicate of seven banks: JPMorgan Chase Bank, N.A.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; BNP Paribas Securities Corp.; Citigroup Global Markets Inc.; Credit Suisse Securities (USA) LLC; Goldman Sachs Bank USA and Mizuho Bank, Ltd.

The loan must be repaid on the earlier of 364 days or upon receipt of financing related to the separation of Xerox into two independent publicly traded companies. Initial pricing, which is based upon a ratings grid, will be 150bps above LIBOR.

Xerox intends to use the proceeds from the loan to repay maturing bonds and for general corporate purposes.