Carl Icahn's bid for computer maker Dell Inc. was backed by Jefferies & Co. The investment bank provided Icahn US$5.2 billion in terms according to sources which told Thomson Reuters LPC.
On Monday, the funding will be launched around 4:00 p.m. at a lender call where the billionaire investor is expected to join said sources.
The loan is valued at US$5.2 billion and is split between two terms. The first offered loan was at US$2.2 billion with a six year term B-1. The other was at US$3.2 billion with a three year term loan. The six year tranch is expected to have a standard 1% amortization. The shorter dated tranche amortizes at 10% said sources.
On Friday, Icahn declined to give statements regarding loan details.
Previously, it was reported that the initial price guidance in May was in the LIB+350 area and is subjected to change due to market conditions.
Icahn reiterated his interest in owning Dell earlier this week in a telephone interview with Thomson Reuters LPC on Tuesday. He also moved forward with his plans to line up US$5.2 billion loan in credit facilities. The statement issued by Icahn was echoed in statements he issued to shareholders in an open letter.
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