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Dell (DELL +0.7%) is seeking $13.8B in loans to carry out its $13.65/share LBO, the company...

Dell (DELL +0.7%) is seeking $13.8B in loans to carry out its $13.65/share LBO, the company discloses in an 8-K. Bankers plan to raise a $4B term B loan, a $1.5B term C loan, a $2B asset-backed loan, $3.25B in bridge loans, and $3B in receivables financing facilities. Also: Michael Dell is investing $500M of his own capital on top of his stake in the company. Dell ticked higher to $13.52 today as shareholder criticism of the LBO mounts.
Comments (3)
  • This is an extremely good deal for the buyers.
    6 Feb 2013, 08:05 PM Reply Like
  • Overpaying for a commoditized business imo.

     

    Dell needs to reinvent itself.
    6 Feb 2013, 09:43 PM Reply Like
  • You may well be right, but given that they will be able to take out 100% of their equity commitment on day one, I struggle somewhat to understand how that could be so. Net of the money that they will be borrowing at a very low rate, this is pretty asymmetric. But I would agree with everything you wrote beyond the first word. You are 100% right that they are paying for a commoditized business that needs to reinvent itself.
    6 Feb 2013, 09:47 PM Reply Like
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