Fitch gives Dell facilities BBB-

Fitch Ratings said it assigned BBB-/RR1 ratings to Dell International LLC's and EMC Corp.'s new senior secured term loan A facilities, comprised of $1.65 billion of term loan A-4 maturing Dec. 20, 2023 and $2.01 billion of term loan A-5 maturing Feb. 8, 2019.

Dell also amended and increased the senior secured revolving credit facility by $1.2 billion to $4.5 billion.

Net proceeds from the facilities, along with Dell's $1.35 billion incremental margin loan and pro rata portion of the $9 billion special dividend from VMware Inc., funded the $14 billion of cash consideration related to Dell's offer to VMware tracking stockholders to exchange their class V shares for class C common shares in Dell Technologies, Inc.

Fitch said the current ratings and outlook reflect an expectation that the incremental $5 billion debt issuance to partially fund the transaction should delay Dell's deleveraging to within Fitch's 3.5x core leverage negative sensitivity until the end of fiscal 2020 at the earliest.

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