Big Dell (DELL) Deal Means Big Payday for Banks/Advisors (JPM) (GS)
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Price: $442.08 +1.68%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
Revenue Growth %: +50.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
Revenue Growth %: +50.5%
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Who wants to take part in a Dell (Nasdaq: DELL) sale anyway?
Everyone.
According to Reuters-compiled data, the fees paid out to banks and advisors in the proposed $24 billion-plus deal for Dell might surpass the $400 million mark. That would be the highest numbers paid out in a leveraged buyout since the $32 billion deal for TXU Group in 2007. It would also create the largest fee pool since 2010.
Morgan Stanley has had its hands in both sides of the deal. Starting off with no spot, the firm agreed to a junior role advising Silver Lake alongside names like Deutsche Bank (NYSE: DB) and UBS (NYSE: UBS). BlackStone (NYSE: BX) then tapped the firm as lead advisor when it entered the framework. Morgan Stanley is still keeping a small financing role with Silver Lake, potentially taking in $23 million if that bid succeeds.
Silver Lake is counting on several banks for about $13.75 billion in financing, leading to about $330 million in fees. In the group include the majors like BofA (NYSE: BAC), RBC (NYSE: RY), Credit Suisse (NYSE: CS), and Barclays (NYSE: BCS). Each of those firms should earn $67 million.
Deutsche Bank (NYSE: DB) would get about $25 million and UBS would take in $15 million.
For Dell, the list is JPMorgan (NYSE: JPM), Evercore (NYSE: EVR), and Goldman Sachs (NYSE: GS). That group would earn a combined $60 million. The WSJ notes today that Goldman would initially make $14 million and then another $3 million every three months.
Everyone.
According to Reuters-compiled data, the fees paid out to banks and advisors in the proposed $24 billion-plus deal for Dell might surpass the $400 million mark. That would be the highest numbers paid out in a leveraged buyout since the $32 billion deal for TXU Group in 2007. It would also create the largest fee pool since 2010.
Morgan Stanley has had its hands in both sides of the deal. Starting off with no spot, the firm agreed to a junior role advising Silver Lake alongside names like Deutsche Bank (NYSE: DB) and UBS (NYSE: UBS). BlackStone (NYSE: BX) then tapped the firm as lead advisor when it entered the framework. Morgan Stanley is still keeping a small financing role with Silver Lake, potentially taking in $23 million if that bid succeeds.
Silver Lake is counting on several banks for about $13.75 billion in financing, leading to about $330 million in fees. In the group include the majors like BofA (NYSE: BAC), RBC (NYSE: RY), Credit Suisse (NYSE: CS), and Barclays (NYSE: BCS). Each of those firms should earn $67 million.
Deutsche Bank (NYSE: DB) would get about $25 million and UBS would take in $15 million.
For Dell, the list is JPMorgan (NYSE: JPM), Evercore (NYSE: EVR), and Goldman Sachs (NYSE: GS). That group would earn a combined $60 million. The WSJ notes today that Goldman would initially make $14 million and then another $3 million every three months.
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