Dell's $10 billion loans for EMC buy stall
By Michelle Sierra
NEW YORK (Reuters) - The commitment deadline on $10 billion of pro-rata loans in a $45 billion financing package backing computer giant Dell’s purchase of data storage products maker EMC Corp has been extended due to a slow order book, a source close to the transaction said.
The Chinese New Year, which delayed approval of requests from foreign banks' home offices to participate in the financing, was the main reason for extending the original February 10 deadline, the source said.
Pro rata loans are primarily sold to banks, and Asian and European lenders are an important component.
"Asian banks -- Chinese and Taiwanese -- they have balance sheets and an ancillary connection with Dell and EMC," a banker following the transaction said, adding documentation delays are not uncommon at this point of the marketing process.