Dell Prices Its $5.5 Billion Buyout Loan and 2 More Heavily Traded Stocks to Follow
Dell Inc. (NASDAQ:DELL): Current price $13.85
Sources told Reuters that Dell has set indicative pricing on a new $5.5 billion loan in support of its approximately $25 billion buyout by founder and CEO Michael Dell and private equity firm Silver Lake Partners. A lender meeting was held Wednesday in New York, and Michael Dell appeared on the agenda to talk about the company. The new arrangement will include a $1.5 billion 5-year term loan C and a $4 billion, 6.5 year term loan B. It is expected that the term loans will be covenant-lite. The term loan C is guided at Libor +275-300 with a 1 percent Libor floor and a 99.5 original issue discount. The term loan B is guided at Libor +375 with a 1 percent Libor floor at 99.