Dell seeks $20bn to buy EMC

Denali Holding Inc, the company that owns Dell, has revealed it's seeking US$20 billion with which to buy EMC.

A new filing explains the company will soon issue First Lien Notes as follows:

• $3,750,000,000 at 3.480 per cent, due for repayment in 2019
• $4,500,000,000 at 4.420 per cent, due in 2021
• $3,750,000,000 at 5.450 per cent, due in 2023
• $4,500,000,000 at 6.020 per cent, due in 2026
• $1,500,000,000 at 8.100 per cent, due in 2036
• $2,000,000,000 at 8.350 per cent, due in 2046

Interest will be paid semi-annually on all of the Notes.

Denali seems confident it will secure this cash, as the filing says “The offering is expected to close on or around June 1, 2016 subject to customary closing conditions.”

The interest rates on offer, especially for the long-term debt, look pretty good. If you're willing to make a 30-year bet on an on-premises technology company. ®