Icahn Secures Loan to Recapitalize Dell, But Is It Enough?

In a presentation submitted Monday morning to the U.S. Securities and Exchange Commission, the special committee of Dell’s (NASDAQ:DELL) board of directors, charged with overseeing the company’s go-private transition, reiterated its concern that investor Carl Icahn of Icahn Enterprises (NASDAQ:IEP) had yet to line up financing to pay for his recapitalization proposal should shareholders approve the plan. This critique has been made at various junctures during discussions between the board and Icahn.

Although the Dell committee has worried that its second-largest investor would not be able to scrape up the necessary funds to finance the deal, Icahn said that financing would be lined up by the shareholder vote on the two proposals, scheduled for July 18.

On Monday, following Dell’s critical SEC submission, some details of Icahn’s financing plan emerged. His proposed offer will be financed with $7.5 billion of cash on the balance sheet, a $5.2 billion credit facility, and $2.9 billion from the sale of receivables, sources listening to a call to Icahn’s lender told Reuters.