According to sources, computer manufacturer Dell plans to issue about $16bn of secured bonds to finance its $67bn acquisition of data storage products manufacturer EMC.
Dell would upsize the issuance further depending on investor appetite. The company could downsize the $8bn term loan B that backs the debt of c. $49bn financing the acquisition, if investor demand is sufficient.
The company is also in talks with banks to upsize its $7bn term loan A which is part of the debt financing the acquisition.
Pricing of the 3-year term loan A was 200bps over Libor and that for the 5-year term loan B was 250bps over Libor.
Debt of $49.5bn outlined to finance the acquisition comprised of a $8bn Term Loan B, $3.5bn of term loan A1 and A2, a $2.5bn acquisition facility and $3bn revolver.
Further, $16bn of secured notes, $9bn of unsecured notes and a $4.9bn bridge financing facility are also part of the debt financing the acquisition.