The new pricing is guided at L+200–225, from L+250, while the 0.75% LIBOR floor remains unchanged and the offer price is guided at par. The six-months of 101 soft call protection will be reset. At that level, the repriced facility, which will maintain its September 2023 maturity, would yield 3.39–3.65% to maturity.
Commitments are due by Tuesday, Oct. 17.
The transaction will see the facility size cut to $4.788 billion, from $5.46 billion, and is the second time this year Dell has come to market to reprice this particular facility, which was originally issued as a $5 billion first-lien term loan in June 2016. The technology company cut 75 bps from the original L+325 margin in February, while in tandem issuing a $500 million fungible add-on. The new transaction comes hard on the heels of two other loans completed by Dell Technologies last week; a $4.45 billion A-2 term loan and a $1.8 billion A-3 term loan to back a refinancing effort. The TLA-2 due Sept. 2021 is priced at L+175, with no floor, while the TLA-3 due December 2018 is priced at L+150, with no floor, as reported.
Alongside Credit Suisse are arrangers J.P. Morgan, Bank of America Merrill Lynch, Barclays, Citi, and Goldman Sachs.
Corporate ratings are BB+/Ba1/BB+. The facility is rated BBB–/Baa3/BBB–, with a 2 recovery rating from S&P Global Ratings.
Dell is the largest private technology company in the U.S. and was taken private in 2013. — Rachel McGovern
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