2 Min Read
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