By Paul A. Harris
Portland, Ore., Sept. 23 - Dell International LLC launched and priced a downsized $1.5 billion issue of seven-year first-lien notes (Ba2/BB+/) at par to yield 5 5/8% on Monday, according to a syndicate source.
The deal was downsized from $2 billion, with proceeds shifted to the term loan.
The yield printed in the middle of the 5½% to 5¾% yield talk.
Joint bookrunner Credit Suisse Securities (USA) LLC will bill and deliver. Barclays, BofA Merrill Lynch, RBC Capital Markets and UBS Investment Bank were also joint bookrunners.
As reported, the issuer abandoned a proposed $1.25 billion tranche of second-lien notes, shifting those proceeds to its term loan.
Proceeds will be used to fund the acquisition of the company and refinance debt.
Dell is a Round Rock, Texas-based provider of technology and business products and services.
| Issuer: | Denali Borrower LLC and Denali Finance Corp. (Dell International LLC)
|
| Amount: | $1.5 billion, downsized from $2 billion
|
| Maturity: | Oct. 15, 2020
|
| Securities: | Senior first-lien notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC (bill and deliver), Barclays, BofA Merrill Lynch, RBC Capital Markets, UBS Investment Bank
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 355 bps
|
| First call: | Oct. 15, 2016 at 104.219
|
| Equity clawback: | 40% at 105.25 until Oct. 15, 2016
|
| Trade date: | Sept. 23
|
| Settlement date: | Oct. 7
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Roadshow
|
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