Monday 21 May 2018

Icahn in talks to raise $5.2bn debt package for Dell takeover

Carl Icahn plans to bring other lenders into syndicate to hold the debt
Carl Icahn plans to bring other lenders into syndicate to hold the debt

Leela Parker and Michelle Sierra New York

DELL Computers bidder Carl Icahn will hold talks with banks today on a $5.2bn (€3.9bn) debt package to finance his planned takeover of the business.

Dell employs more than 2,000 staff in Ireland at sites in Dublin and Limerick.

The Texas-based computer maker is at the centre of a massive takeover battle between Mr Icahn and rival billionaire and Dell founder Michael Dell.

Now Mr Icahn has lined up US investment bank Jefferies & Co to put together a massive $5.2bn in loans to back his bid.

Mr Jefferies is planning to bring other lenders into a syndicate that will hold the debt.

The funding deal is due to be launched to those debt investors today on a conference call.

Mr Icahn declined to comment on details of the term loans on Friday.

He is understood to be planning to borrow $2.2bn over six-years and $3bn over three years to back his bid.

Earlier this week, Mr Icahn repeated his interest in owning Dell, saying on Tuesday that he was moving forward with his plans to line up $5.2bn 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," Mr Icahn said.

"We expect to have $5.2bn in the next couple of weeks. Our investment bank is committing $1.6bn and my affiliates and I would provide $2bn, if necessary."

Mr Icahn's letter to Dell's shareholders came on the heels of reports that he could exit the Dell race after struggling to raise the $5.2bn in debt he needed to back a leveraged recapitalisation he proposed to Dell's board on May 9. (Reuters)

Irish Independent

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