By Michelle Davis
Dell Inc.’s $67 billion buyout of EMC Corp. is shaping up to be a win for nearly everyone involved — except for the data storage company’s bondholders.
Investors in EMC’s $5.5 billion of bonds are down about $562.6 million since news of the deal first became public last week.
They’re selling off because of concerns that Dell’s plan to raise about $50 billion in debt for the acquisition will push existing bondholders down the capital structure, putting more creditors ahead of them to be repaid in the event the company runs into trouble. The EMC notes lack protections that would have allowed bondholders to demand early repayment in the event of an ownership change.
“From the perspective of EMC bondholders, we’d like to see the deal not happen,” saidJoe Mayo, head of credit research at Conning, a global insurance investment manager that owns EMC bonds. “They’re going to end up at the bottom of the pile when all is said and done.”
“Read the Full Article at www.bloomberg.com >>>>”
ATTENTION READERS
We See The World From All Sides and Want YOU To Be Fully InformedIn fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.
About VT - Policies & Disclosures - Comment Policy
Due to the nature of uncensored content posted by VT's fully independent international writers, VT cannot guarantee absolute validity. All content is owned by the author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners, or technicians. Some content may be satirical in nature. All images are the full responsibility of the article author and NOT VT.
