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:

Sony Cyber Attack

REUTERS SHOWCASE

Ten Years On

Ten Years On

10 years on, tsunami warning stumbles at the "last mile".  Full Article 

Exit Polls

Exit Polls

BJP unlikely to form Jammu & Kashmir govt - polls.  Full Article 

Forceful Conversions

Forceful Conversions

BJP distances itself from religious conversions.  Full Article 

Hopeful Dhoni

Hopeful Dhoni

India's new vintage nearly ready, says Dhoni.  Full Article 

Photo

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Ali Hospitalized

Ali Hospitalized

Boxing great Muhammad Ali hospitalized with pneumonia.  Full Article 

Going International

Going International

Bollywood’s Priyanka Chopra sets sights on American TV.  Full Article 

India This Week

India This Week

Some of our best photos from this week.   Full Coverage 

Reuters India Mobile

Reuters India Mobile

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