Dell sets Wednesday launch for $7.5 billion credit facility

By Sara Rosenberg

New York, Sept. 10 - Dell Inc. scheduled a bank meeting for Wednesday to launch its $7.5 billion senior secured credit facility, according to a market source.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets are the lead arrangers on the deal.

The facility consists of a $2 billion asset-based revolver, a $4 billion 61/2-year covenant-light term loan B and a $1.5 billion five-year covenant-light term loan C, the source said.

In filings with the Securities and Exchange Commission, the company had said that the revolver would be priced at Libor plus 175 basis points, the term loan B would be priced at Libor plus 350 bps with a 1% Libor floor and the term loan C would be priced at Libor plus 300 bps with a 1% Libor floor.

Official price talk is not yet out.

The filings also said that amortization on the term loan B is 1% per annum, while the term loan C amortizes at 10% per annum.

Proceeds will be used to help fund the buyout of the company by Michael Dell, founder, chairman and chief executive officer, and Silver Lake for $13.75 per share plus a special dividend at or before closing of $0.13 per share.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

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