RLPC: Dell readies launch of $5.5B LBO financing package

NEW YORK, Sept 10 Tue Sep 10, 2013 1:27pm EDT

NEW YORK, Sept 10 (Reuters) - Computer maker Dell Inc is launching a $5.5 billion loan to back the company's $24 billion buyout by founder Michael Dell and private equity firm Silver Lake Partners, sources told Thomson Reuters LPC.

A lender meeting is set for 1:30 p.m. EST September 11 in New York City.

Bank of America Merrill Lynch, RBC, Barclays, Credit Suisse, and UBS are lead arrangers on the loan financing.

The new deal will include a $1.5 billion, five-year Term Loan C and a $4 billion, 6.5-year Term Loan B. The term loans are expected to be covenant-lite.

The TLB will amortize at 1 percent annually. Ratings are to be determined.

On August 2, a special committee of the Dell board announced a revised definitive merger agreement that increased the aggregate value to unaffiliated shareholders by at least $350 million, by increasing the purchase price by $0.10 to $13.75 per share and providing certain dividend payouts.

A vote on the buyout, held under the revised standard, has been scheduled for Sept. 12.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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