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 …

[The little voice inside my head]

30 year bet on an on premises company!?

I had a previous post about Dell buying EMC and it was something about why couldn't Dell come with 20Billion loan or something like that... now we are talking about 30 year bets... on AIR!, LOL! EMC is really overpriced to today's standards. Online storage is cheaper, though not as safe as on premises... will companies realize the advantages of having data reside on premise instead of online before management tells them to go the "wrong" route? Question really is as many have stated before, what is the price of your data worth when it goes publicly available?

[Charlie Clark]

If it looks like a junk bond and smells like a junk bond then…

Those rates are unfeasible for the company so that looks very much like a promise for redemption (financed by more debt) or renegotiation in a couple of years. Assuming, of course, the company doesn't go bust first. That's the definition of a junk bond.

Be interesting to see the credit rating for them (paid for by Dell, of course).