RLPC: Jefferies sets pricing on $5.2B loan for Icahn's Dell bid

June 24 Mon Jun 24, 2013 1:46pm EDT

June 24 (Reuters) - Jefferies & Co outlined price guidance on the $5.2 billion in term loans backing Carl Icahn's bid for computer manufacturer Dell Inc, sources said.

Syndication of the covenant-lite loan package is set to launch to investors on Monday via a 4 p.m. ET lender call that the billionaire investor is expected to join.

A $2.2 billion, six-year term loan B-1 is guided at LIB+400 with a 1 percent Libor floor. A $3 billion, 3.5-year term loan B-2 is guided at LIB+350 with a 75 basis-point Libor floor.

Both tranches are offered at a discount of 99.5 cents on the dollar and will carry 101 soft call protection for one year.

The six-year tranche will have standard 1 percent amortization, while the shorter-dated tranche amortizes at 10 percent per year.

Icahn is moving forward with an alternative plan he offered to Dell shareholders last week, proposing a tender offer for 1.1 billion shares at $14 apiece in a stock buyback.

Icahn is expected to have the $5.2 billion financing lined up for a July 18 shareholder vote on founder Michael Dell and Silver Lake Partners' buyout offer for $13.65 a share, or $24.4 billion.

In afternoon trading Dell shares were down 0.2 percent at $13.31.

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