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

Artificial Intelligence

Artificial Intelligence

Google bolsters artificial intelligence efforts, partners with Oxford.  Full Article 

Addressing Concerns

Addressing Concerns

China's Xiaomi shifts some smartphone user data out of Beijing on privacy concerns.  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Apple-1 Auction

Apple-1 Auction

Early Apple computer sells for $905,000 at auction.  Full Article 

No More Nokia

No More Nokia

Microsoft looks set to drop Nokia name from smartphones.  Full Article 

Deal Talk

Deal Talk

Apple ponders sapphire options, leaves door open for GT.  Full Article 

Reuters India Mobile

Reuters India Mobile

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