| LONDON, Sept 18
LONDON, Sept 18 A euro-denominated tranche
totalling around 500 million euros ($667.45 million) is being
considered on computer maker Dell's $5.5 billion loan
backing the company's $25 billion buyout by founder and CEO
Michael Dell and private equity firm Silver Lake Partners,
banking sources said on Wednesday.
The euro portion will be welcomed by European loan investors
eager to invest in one of the biggest leveraged loan financings
so far this year, the bankers said.
Dell's $5.5 billion issuance is the second-largest
institutional LBO loan this year, behind Heinz's $9.5 billion
institutional issuance backing Heinz's $28 billion buyout by
Berkshire Hathaway and 3G Capital, according to Thomson Reuters
As much as 500 million euros could be carved-out of the $4
billion, 6.5 year term loan B, which will be offered at the same
pricing guidance as the dollar TLB of 375 bps, with a 1 percent
floor and 99 OID, the bankers said.
Commitments are due from European investors by September 23,
the same deadline for the rest of the term loans.
As previously reported the financing also includes a $1.5
billion, five-year TLC guided to pay between 275-300 bps, with a
1 percent Libor floor and a 99.5 OID, a $2 billion, five-year
asset-based revolving credit facility. There is also $2 billion
in first-lien seven-year secured notes and $1.25 billion in
second-lien eight-year secured notes.
Bank of America Merrill Lynch, RBC, Barclays, Credit Suisse,
and UBS are lead arrangers on the deal.
The banks declined to comment.
The financing package will also include an up to $2 billion
7.25 percent ten-year subordinated note issuance from Microsoft,
and roughly $7.7 billion in existing cash on Dell's balance
($1 = 0.7491 euros)
(Editing by Christopher Mangham)