(Correcting size of debt financing to $11-12 billion)
By Michelle Sierra
NEW YORK Feb 5 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
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
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
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)