Bloomberg News

Dell Said to Plan $3.25 Billion Bond Sale to Help Finance LBO

September 16, 2013

Dell Inc. (DELL:US) plans to raise $3.25 billion with a two-part bond offering after winning shareholder approval for a $24.9 billion leveraged buyout, according to a person with knowledge of the transaction.

The third-largest maker of personal computers intends to issue $2 billion of first-lien seven-year notes and $1.25 billion of second-lien eight-year securities, said the person, who asked not to be identified because terms aren’t set.

Bankers for the Round Rock, Texas-based company’s offering plan to begin marketing the debt as soon as tomorrow, the person said. Credit Suisse Group AG, Barclays Plc, Bank of America Corp., Royal Bank of Canada and UBS AG are managing the offering.

Approval for the buyout, announced Sept. 12, ended a battle between Dell founder and Chief Executive Officer Michael Dell and investors led by billionaire Carl Icahn and Southeastern Asset Management Inc. over the takeover price. The takeover is the biggest LBO since Blackstone Group LP took Hilton Worldwide Inc. private in 2007.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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