RLPC: Dell readies launch of $5.5B LBO financing package
NEW YORK, Sept 10
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.