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Dell Inc set to meet creditor banks for leveraged buyout financial backing

September 11
3:52 AM 2013

According to an anonymous source with knowledge of the transaction, the management committee of Dell Inc would be meeting with creditors tomorrow to negotiate about USD5.5 billion in loans to support the buyout bid from Dell Chairman Michael Dell and Siver Lake Management LLC.

The total financing is broken into a USD4 billion term B loan and a USD1.5 billion C loan, according to the source who sought anonymity due to lack of authorization to discuss the transaction publicly.

These loans are part of a larger USD13.8 billion financing commitment Dell formalized back in February to back up the USD24.9 billion leveraged buyout. Billionaire Carl Icahn withdrew from his bid to take control of the PC maker yesterday, ending the impasse that had held back the finalization of the buyout.

Amongst the banks arranging the financing include the Royal Bank of Canada, Credit Suisse Group AG, Barclays Plc and Bank of America Corp. Part of the overall package is a USD2 billion asset backed loan and a USD3.25 billion bridge debt according to data obtained by Bloomberg.

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