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

REUTERS SHOWCASE

Web Control

Web Control

China calls on Russia, central Asia allies to tighten Internet controls.  Full Article 

Market Debut

Market Debut

Weibo shares jump in debut as investors set aside concerns.  Full Article 

In Demand

In Demand

Microsoft's Xbox One sales cross 5 million.  Full Article 

Digital Currency

Digital Currency

Mt. Gox suitors seek support to save bitcoin exchange.  Full Article 

Surprise Guest

Surprise Guest

Runaway spy Snowden is surprise guest on Putin phone-in.  Full Article 

Wall St Unfazed

Wall St Unfazed

Google still a top pick for Wall St, despite mobile ad challenges.  Full Article 

Electric Shock Risk

Electric Shock Risk

Nokia suspends European tablet sales due to charger fault.  Full Article 

Reuters India Mobile

Reuters India Mobile

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