Bloomberg News

Dell Gets $13.8 Billion Financing for Biggest Buyout Since 2007

February 06, 2013

Dell Inc (DELL:US)., 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. (TXU:US) was purchased by KKR & Co. and Texas Pacific Group in 2007.

Dell has about $8.9 billion in outstanding borrowings (DELL:US), 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.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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