Michael Dell, Silver Lake to put $2.15 billion toward buyout

SAN FRANCISCO Thu Feb 7, 2013 4:57am IST

A Dell Latitude D430 laptop computer is seen in New York August 26, 2008. REUTERS/Brendan McDermid/Files

A Dell Latitude D430 laptop computer is seen in New York August 26, 2008.

Credit: Reuters/Brendan McDermid/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Michael Dell and affiliates of the firm that manages his wealth will collectively put $750 million toward the $24.4 billion buyout of computer maker Dell Inc DELL.O, the company disclosed in a regulatory filing on Wednesday.

Michael Dell, founder of the company, will contribute $500 million cash and MSDC Management, an affiliate of his MSD Capital, will contribute $250 million, Dell Inc said.

Silver Lake, a private equity firm partnering with Michael Dell on the deal, is putting up $1.4 billion.

Dell, the world's No. 3 personal computer maker, also broke down details of the debt financing secured for the buyout, including $4 billion in senior secured term loans from Bank of America (BAC.N), Barclays (BARC.L), Credit Suisse (CSGN.VX) and RBC (RY.TO).

On Tuesday, the company announced that Michael Dell had struck a deal to take the company private in the biggest leveraged buyout since the financial crisis, partnering with Silver Lake and Microsoft Corp (MSFT.O) to try to turn around the struggling company without Wall Street scrutiny.

The filing also disclosed that under certain circumstances if the merger can not be completed, Michael Dell and Silver Lake could have to pay a termination fee of up to $750 million to Dell Inc.

(Reporting by Edwin Chan; Editing by Phil Berlowitz and Steve Orlofsky)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Hacking

TECH SHOWCASE

Samsung Results

Samsung Results

Samsung downbeat on Q3 prospects as profits slide.  Full Article 

Under Scrutiny

Under Scrutiny

Factbox - Google under European regulatory spotlight.  Full Article 

Internet Effort

Internet Effort

Facebook mobile app to offer free, limited Internet in Zambia.  Full Article 

Reducing Workforce

Reducing Workforce

Apple to lay off about 200 people at Beats - Bloomberg.  Full Article 

New Offering

New Offering

Amazon quickens push into tough local services market.  Full Article 

Drone Pioneer

Drone Pioneer

China's drone king says the revolution depends on regulators.  Video 

Telemedicine Service

Telemedicine Service

Khosla-backed startup hopes to bring doctors to patients' mobiles.  Full Article 

Sony Earnings

Sony Earnings

Sony warns smartphone weakness will brake profit progress after Q1 surge.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage