Dell, HP Bondholders Could Feel Buyout Pain
Currently, Bloomberg reports Michael Dell may look to take control of Dell by rolling an equity stake in the company worth nearly $4 billion, a further investment of up to $1 billion, and between $1 billion to $2 billion in equity from Silver Lake and Microsoft.
The total equity of the deal, Bloomberg reports, would be between $8 billion and $9 billion, indicating that a similar amount of debt would be needed to take the company over, given Dell's current market cap of $23 billion.
While some analysts have puzzled over how a takeover consortium might be able to raise such financing, Moody's analysis may indicate options for investors, in addition to a still unclear ability to repatriate the near $14 billion in cash and cash equivalents that currently sit on Dell's books.
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