Jefferies readies loans for Icahn's Dell bid: sources
By Leela Parker and Michelle Sierra
(Reuters) - Jefferies & Co will provide $5.2 billion in term loans to back Carl Icahn's bid for computer manufacturer Dell Inc, sources told Thomson Reuters LPC.
The funding will be launched on Monday at a 4:00 p.m. lender call that the billionaire investor is expected to join, the sources said.
The $5.2 billion is split between a $2.2 billion six-year term loan B-1 and a $3 billion three-year term loan B-2. The six-year tranche will have standard 1 percent amortization, while the shorter-dated tranche amortizes at 10 percent, they said.
Icahn declined to comment on details of the term loans on Friday.
As previously reported, initial price guidance in May was in the LIB+350 area, subject to change due to market conditions.
Earlier this week, Icahn repeated his interest in owning Dell, saying in a telephone interview with Thomson Reuters LPC on Tuesday that he was moving forward with his plans to line up $5.2 billion in credit facilities. His comments echoed statements he made earlier that day in an open letter to Dell shareholders.
"Nothing has changed regarding the financing," Icahn said in the interview. "We expect to have $5.2 billion in the next couple of weeks. Our investment bank is already committing $1.6 billion and my affiliates and I would provide $2 billion, if necessary."
Icahn's letter to Dell's shareholders came on the heels of a series of reports that Icahn could exit the Dell race after struggling to raise the $5.2 billion in debt he needed to back a leveraged recapitalization he proposed to Dell's board on May 9. Continued...