Carl Icahn expects to wrap up formal commitments today for the $5.2 billion six-year financing package he is raising for Dell, The Post has learned.
“Everything we heard is the book is in shape,” a source who is buying a piece of the loan said yesterday. “Friday morning it should be wrapped up.”
While the financing deal is expected to carry no covenants, the source said, the senior loan is equal to only half of the cash Dell is expected to have on hand should Icahn’s recapitalization plan succeed.
Icahn plans to use the $5.2 billion — combined with Dell cash and money borrowed against receivables — to pay shareholders the more than $15 billion needed to give them $14 a share for 60 percent of the business. When combined with the outstanding shares, he is claiming his offer is worth $17.32 a share.
Michael Dell, teamed with Silver Lake Partners, is offering $13.65 a share. Dell closed trading yesterday at $13.34.
Icahn’s apparently successful fund-raising is in contrast to several weeks ago when he scrapped a similar Dell financing package.
Icahn, in a lender call earlier in the week, said the PC business was far from dead and that PCs were necessary in offices, a source on the call said.
He also said, if necessary, he would raise his offer to beat Michael Dell.
The shareholder vote on Michael Dell’s company-recommended offer is July 18.
Icahn declined to comment.