Moody’s rates Diamond notes Ba2, Dell loans Baa3

Moody's Investors Service said it assigned provisional Ba2 ratings to the proposed senior unsecured notes of Diamond 1 Finance Corp. and co-issuer Diamond 2 Finance Corp., which are entities that will merge into Dell International LLC (a debt issuing subsidiary of Dell Inc.) and EMC Corp., respectively, upon closing of the Dell EMC merger.

At transaction close, Dell International and EMC will assume all of Diamond 1’s and Diamond 2’s obligations under these notes.

In addition, Moody's assigned provisional Baa3 ratings to Dell International’s proposed senior secured term loan A issuances and revolving credit facility.

All other non-provisional Dell Inc. and Dell International ratings, including Dell's Ba2 corporate family rating, remain on review for upgrade.

Dell will use the net proceeds from the new debt to help fund the acquisition of EMC. Dell expects the transaction to close by the end of October.

Moody’s said the provisional ratings assume that the corporate family rating will be upgraded by one notch to Ba1 from Ba2 upon closing of the transaction. Following the announcement that Dell entered into a merger agreement with EMC on Oct. 12, 2015, Moody's placed all ratings of Dell and Dell International under review for upgrade.

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