Published February 05, 2013
NEW YORK – Computer maker Dell Inc is preparing a debt financing package of between $11 billion and $12 billion to back its $24.4 billion leveraged buyout, banking sources following the situation told Thomson Reuters LPC.
The final size of the debt financing depends on what portion of the company's existing notes remain outstanding, sources added.
Lead banks Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets are expected to begin reaching out to other lenders to begin syndicating the loans as early as today.
The bank loan portion of the financing package will include an asset-based revolving credit facility and two term loans, banking sources said. A bridge loan that will be taken out by a bond sale rounds out the financing.
Bank of America Merrill Lynch, Barclays and Credit Suisse declined to comment. RBC and Dell did not return calls by press time.
In what constitutes the largest LBO since the financial crisis, Dell said today that it had agreed to go private in a $24.4 billion deal led by its founder Michael Dell and private equity firm Silver Lake. The deal is also being financed by a $2 billion loan from Microsoft.
Under the terms of the transaction, Dell shareholders will receive $13.65 a share.
(Editing By Jon Methven)