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Michael Dell puts $US500m into buyout

Reuters, AFR | Feb. 7, 2013
Michael Dell and affiliates of the firm that manages his wealth will collectively put $US750 million toward the $24.4 billion buyout of computer maker Dell, the company disclosed in a regulatory filing on Wednesday.

Michael Dell puts $US500m into buyout 

 Phtoto: AP

MichaelDell and affiliates of the firm that manages his wealth will collectively put $US750 million toward the $24.4 billion buyout of computer maker Dell, the company disclosed in a regulatory filing on Wednesday.

Michael Dell, founder of the company, will contribute $US500 million cash and MSDC Management, an affiliate of his MSD Capital, will contribute $US250 million, Dell said.

Silver Lake, a private equity firm partnering with Michael Dell on the deal, is putting up $US1.4 billion.

Dell, the world's No. 3 personal computer maker, also broke down details of the debt financing secured for the buyout, including $US4 billion in senior secured term loans from Bank of America, Barclays, Credit Suisse and RBC.

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 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 $US750 million to Dell.

 

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