Activist investor Carl Icahn and Southeastern Asset Management has already begun with banks and asset management companies in negotiations to queue up as much as $ 7 billion bridge loan commitment to back up their leveraged recapitalization proposal Dell , banking sources told Thomson Reuters on Thursday, LPC.
Jefferies' leadership process.
Icahn and Southeastern locked in financing, Dell shareholders meet former CEO Michael Dell (Michael Dell) and Silver Lake Partners opponent to take private offer in the July vote. Sources said Icahn and Southeastern seeking at least $ 520 million and up to $ 700 million to lenders.
, "Another source said:" They want shareholders to know that they have an alternative.
Jeffries is understood to have set aside $ 160 million in bridge loans.
Arranger requires a large commitment of $ 1 billion, and lenders are expected to line up early next week.
Commitment Agreement lenders to provide a preliminary 3.5%, which is typical of these transaction costs. Added sweeteners, Icahn and the southeast for lenders to provide additional increment of 7.5% of any profits, if two shareholders receive the Silver Lake prevalence increased offer.
Guidance in the 350bp London interbank loan pricing, although pricing may change syndicated efforts only in its early stages, the same sources said.
Jefferies and Icahn declined to comment. Reporters press time, the southeast and Dell's call were not returned.
Icahn and Southeastern Asset Management, the company's largest shareholder, in the May 9 letter Dell Board proposed an alternative, led by founder Michael Dell (Michael Dell) and private equity firm Silver Lake Partners acquisitions. Icahn's proposal, shareholders may hold the existing stock option to receive a cash distribution of $ 12 a share, or $ 12 dollars in stock value per share of $ 1.65.
If Dell's shareholders accept the offer Icahn and the southeast, bridge loans, will become the permanent financing.
Michael Dell (Michael Dell) and Silver Lake Partners, who are looking to take the company private, 13.65 yuan per share, or 24.4 billion, has received $ 13.75 one billion debt commitments, some banks and Microsoft to support their proposal. BofA Merrill Lynch, Barclays, Credit Suisse (Credit Suisse) and Royal Bank of Canada Capital Markets (RBC Capital Markets) Bank agreed to provide $ 11.75 one billion bank line, Microsoft agreed to purchase up to $ 200 million subordinated notes.
Icahn and the Southeast, totaling approximately 13% of Dell's stock, that Silver Lake offer undervalued the company.
Dell's shares rose 0.01 percent to $ 13.37 Thursday afternoon.
 
 



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