Dell Gets $13.8 Billion Financing for Biggest Buyout Since 2007Krista Giovacco
Dell Inc., the personal computer maker being acquired by Silver Lake Management LLC and Chief Executive Officer Michael Dell, is seeking $13.8 billion in loans to support the leveraged buyout.
Bank of America Corp., Barclays Plc, Credit Suisse Group AG, and Royal Bank of Canada are arranging the financing, which includes a $4 billion term B portion, a $1.5 billion C slice, a $2 billion asset-backed piece, and $3.25 billion of bridge facilities, the company said today in a regulatory filing. There’s also a $1.9 billion commercial receivables portion and a $1.1 billion revolving consumer receivables facility.
Silver Lake, the technology-focused buyout firm based in Menlo Park, California, is buying Dell for $24.4 billion the biggest LBO since Energy Future Holdings Corp. was purchased by KKR & Co. and Texas Pacific Group in 2007.
Dell has about $8.9 billion in outstanding borrowings, including $5.9 billion of bonds and $3 billion in bank debt, according to data compiled by Bloomberg.
Bridge facilities are short-term loans that usually mature in one year and are often used as backstops to bond offerings or longer-dated bank debt.