Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Silver Lake Contributed $1.4 Billion to Dell Buyout Offer, Filings Show

DellatCESA huge trove of filings with the U.S. Securities and Exchange Commission containing new details about yesterday’s $24.4 billion leveraged buyout of Dell have just come out. While there’s still a lot we don’t know about the deal, there are some interesting new details.

Here’s one: Silver Lake’s contribution, which as far as I know had only been guessed at, turns out to have been $1.4 billion.

I’m no expert in all the nuances of how these things work, but the way I read this 8K, Silver Lake and Dell pooled that plus $750 million in cash plus 273 million shares of Dell stock worth about $3.7 billion as of today’s closing price for a combined $5.8 billion to fund and capitalize a holding company called Denali.

The name Denali is interesting, because it was said to be used as a code word — specifically the name “Mr. Denali” — while the deal’s terms were being hashed out in a six-month negotiation process that began last August, according to Bloomberg News.

It seems that Denali Holdings is the vehicle through which Dell the company will be acquired. Denali will then presumably take the name Dell.

Anyway, combine all that with about $13.75 billion in loans from Bank of America, Barclays, Credit Suisse and RBC, additional cash taken from Dell’s balance sheet, and a $2 billion loan from Microsoft, and there you are.

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