We investigate loan price in mergers and acquisitions (M&As), using hand-matched loan information for a sample of 330 U.S. M&A transactions. We find the loan price measured by the all-in-drawn spread (AIDS) increases signicantly with the relative size of a deal and decreases with the proportion of stocks offered in the consideration. These results are robust to several specications that address endogeneity concerns. We posit that deal size is a major concern for lenders because it involves more uncertainties, greater business complexity, and greater integration diffculties. Further, the contingent pricing mechanism built in stock offers signicantly lowers the lender's concerns.