{"id":659906,"date":"2013-05-23T14:48:16","date_gmt":"2013-05-23T18:48:16","guid":{"rendered":"http:\/\/www.pehub.com\/?p=225868"},"modified":"2013-05-23T14:48:16","modified_gmt":"2013-05-23T18:48:16","slug":"icahn-lining-up-5-2-bln-loan-for-rival-dell-did","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/659906","title":{"rendered":"Icahn Lining Up $5.2 Bln Loan for Rival Dell Did"},"content":{"rendered":"

Activist investor Carl Icahn and Southeastern Asset Management Inc<\/strong> have initiated talks with banks and asset managers to begin syndicating a $5.2 billion term loan B to back their bid for Dell Inc<\/strong>, banking sources told Thomson Reuters LPC on Thursday.<\/p>\n

(Reuters) – Activist investor Carl Icahn and Southeastern Asset Management Inc have initiated talks with banks and asset managers to begin syndicating a $5.2 billion term loan B to back their bid for Dell Inc, banking sources told Thomson Reuters LPC on Thursday.<\/p>\n

Jefferies & Co is leading the deal.<\/p>\n

Pricing on the loan is being guided at 350bp over Libor, though pricing could change as syndication efforts are only in the early stages, the same sources said.<\/p>\n

Jefferies declined to comment. Calls to Carl Icahn, Southeastern and Dell were not returned by press time.<\/p>\n

The arranger is asking for commitments as large as $1 billion and is expected to have lenders lined up as early as next week.
\nIn a May 9 letter to Dell’s board, Icahn and Southeastern Asset Management, two of the company’s largest shareholders, proposed an alternative to a buyout deal led by founder Michael Dell and private equity firm Silver Lake Partners. Under the Icahn proposal, shareholders could hold onto existing stock with the option of receiving either a distribution of $12 per share in cash or $12 a share in stock valued at $1.65 per share.<\/p>\n

The proposal would be financed by existing cash and about $5.2 billion in new debt.<\/p>\n

This new bid by Icahn and Southeastern rival an offer made earlier by Michael Dell and Silver Lake Partners who are looking to take the company private for $13.65 a share, or $24.4 billion.<\/p>\n

Dell has already received $13.75 billion in debt commitments from a number of banks and Microsoft Corporation to back that offer. Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets agreed to provide $11.75 billion in bank lines and Microsoft agreed to purchase up to $2 billion in subordinated notes.<\/p>\n

Icahn and Southeastern, which together own about 13 percent of Dell stock, have argued that the Silver Lake offer undervalues the company.<\/p>\n

Dell’s shares rose 0.17 percent to $13.39 Thursday morning.<\/p>\n

The post Icahn Lining Up $5.2 Bln Loan for Rival Dell Did<\/a> appeared first on peHUB<\/a>.<\/p>\n

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Activist investor Carl Icahn and Southeastern Asset Management Inc have initiated talks with banks and asset managers to begin syndicating a $5.2 billion term loan B to back their bid for Dell Inc, banking sources told Thomson Reuters LPC on Thursday. (Reuters) – Activist investor Carl Icahn and Southeastern Asset Management Inc have initiated talks […]<\/p>\n","protected":false},"author":7426,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-659906","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/659906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7426"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=659906"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/659906\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=659906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=659906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=659906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}