Dell Prices Its $5.5 Billion Buyout Loan and 2 More Heavily Traded Stocks to Follow

Dell Inc. (NASDAQ:DELL): Current price $13.85

Sources told Reuters that Dell has set indicative pricing on a new $5.5 billion loan in support of its approximately $25 billion buyout by founder and CEO Michael Dell and private equity firm Silver Lake Partners. A lender meeting was held Wednesday in New York, and Michael Dell appeared on the agenda to talk about the company. The new arrangement will include a $1.5 billion 5-year term loan C and a $4 billion, 6.5 year term loan B. It is expected that the term loans will be covenant-lite. The term loan C is guided at Libor +275-300 with a 1 percent Libor floor and a 99.5 original issue discount. The term loan B is guided at Libor +375 with a 1 percent Libor floor at 99.

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Alcoa (NYSE:AA): Current price $8.19

The American aluminum producer said that proposed modifications in rules governing warehouses will damage producers without aiding consumers who complain about difficulty in obtaining the metal. In a letter to the London Metal Exchange dated Tuesday, Alcoa said the proposed changes “constitute a major market intervention that will aggravate the lack of transparency” that has damaged producers and consumers. On July 1, the exchange proposed a rule to take care of warehouse withdrawal delays that beer makers have blamed for $3 billion in additional costs. The rule mandates that some warehouses deliver more metal than they take in, effective April 1, if approved. A public comment period ends on the last day of September.

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Avanir Pharmaceuticals Inc. (NASADAQ:AVNR): Current price $4.81

Avenir  announced Wednesday that it reached a settlement accord with Wockhardt USA LLC and Wockhardt Ltd. to resolve pending patent litigation in response to Wockhardt’s abbreviated new drug application requesting approval to market generic versions of Avanir’s Nuedexta (dextromethorphan hydrobromide/quinidine sulfate) capsules. The agreement gives Wockhardt the right to start selling a generic version of NUEDEXTA on July 30, 2026, or earlier under certain circumstances. Beyond that, the parties will file a stipulation and order of dismissal with the U.S. District Court for the District of Delaware, which will conclude the litigation so far as Wockhardt is concerned. However, the settlement does not conclude Avanir’s ongoing litigation against the other two ANDA filers.

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