NEW YORK: Computer giant #Dell on Monday announced a US$ 3.25 billion junk bond, the riskiest and lowest-rated part of a financing package to fund its US$ 67 billion purchase of data storage company #EMC.
JP Morgan and Credit Suisse are leading the junk-bond offering, which follows a US$20 billion six-part investment-grade bond in mid-May and a US$5 billion Term Loan B that priced last week.
The two-part senior notes deal will be split between five-year no-call two and eight-year no-call three tranches, and is expected to be rated Ba2/BB/BB+.
Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, Deutsche Bank and RBC are joint bookrunners on the trade, which is expected to price on Thursday.
Leads are expected to look to Charter Communications as a pricing template. The cable provider used a similar combination of investment-grade and high-yield notes last year to finance its takeover of Time Warner Cable.
Charter's high-yield notes last week were quoted some 150bp wide to the company's investment-grade notes, with yields of 5.4% and 3.9% respectively for tenors of around 10 years, according to Thomson Reuters data.
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