Dell ups revolver to $4.5 billion, adds $6.65 billion term loans

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Dell Technologies Inc. amended its senior secured credit agreement on Thursday to increase revolving commitments by $1.17 billion to $4.5 billion and add $6.65 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

The term loans include a $1.65 billion tranche of five-year term A-4 loans and a $5 billion tranche of term A-5 loans, of which $2,016,000,000 was drawn as of Friday, after being reduced on a dollar for dollar basis by the net proceeds of the term A-4 loans and a margin loan.

The term A-5 loans mature on the earlier of Feb. 8, 2019 and the date on which the merger agreement with VMware, Inc. is terminated by Dell.

The total principal amount of the term A-5 loans will be reduced on a dollar for dollar basis by the net proceeds of certain alternative financing.

The term A-4 loans are subject to quarterly amortization. The term A-5 loans are not subject to amortization.

The term A-4 loans will bear interest at Libor plus a margin ranging from 125 basis points to 200 bps, depending on Dell’s credit ratings.

The term A-5 loans bear interest at Libor plus 175 bps.

JPMorgan Chase Bank, NA is the credit agreement’s term loan A/revolver administrative agent.

Proceeds of the term loans are to be used in connection with the VMware transaction.

Dell Technologies is a Round Rock, Texas-based technology company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.