Dell Said to Market Debt Next Week for $67 Billion EMC Dealby
The company may offer about $16 billion of high-grade secured bonds, said the person, who asked not to be identified without authorization to speak publicly. Dell also plans to sell an $8 billion term loan to institutional investors, the person said.
Investors have been on the lookout for a host of debt offerings from Dell since the company said in October that banks had committed $49.5 billion of financing for the takeover. In April, the computer maker was close to placing a senior portion of the debt financing -- $11 billion of term loans that were up-sized by $1 billion -- through a syndicate of 24 banks, a person with knowledge of the matter said at the time.
Dell is also selling assets with EMC to raise the cash needed to fund the deal and to reduce the debt the two companies will assume as part of the transaction. The company needs to get regulatory clearance and the approval of EMC’s shareholders before it can close the deal.
Kim Otzman, a representative for Dell, didn’t respond to requests for comment.