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DELL COMPLETES $225 MILLION IN PRIVATE FINANCINGS

 AUSTIN, Texas, Aug. 26, /PRNewswire/ -- Dell Computer Corporation (NASDAQ:DELL) today announced the completion of two private placements of securities totaling $225 million. Net proceeds of approximately $218 million will be used to repay existing indebtedness and to provide funds for general corporate purposes, including working capital investments, expansion of operations and investments in infrastructure. The financings are:
 Convertible Preferred Stock
 $125 million in Series A Convertible Preferred Stock (1,250,000 shares) were purchased by Goldman, Sachs & Co. and resold by them pursuant to exemptions from SEC registration, including Rule 144A and Regulation S. The Series A shares, which are rated B/b2, carry an annual dividend rate of 7 percent, payable quarterly beginning Nov. 15, 1993. Each share has a $100 liquidation preference and is currently convertible into 4.21 shares of common stock (an equivalent conversion price of $23 3/4). The Series A shares may be redeemed by the company after Aug. 25, 1996.
 Senior Notes
 $100 million in unsecured 11 percent Senior Notes due Aug. 15, 2000, were sold to Goldman, Sachs & Co. and Citicorp Securities, Inc. and resold by them pursuant to exemptions from SEC registration, including Rule 144A. The notes carry a rating of BB-/B1. Interest is payable semi-annually beginning Feb. 15, 1994, and the 11 percent rate may increase up to 1 percent if the company has not filed a registration statement within 90 days and exchanged the notes for notes registered under the Securities Act within 180 days. Dell has the option to redeem the notes, in whole or in part, beginning Aug. 15, 1998.
 At the end of the second fiscal quarter, Dell had approximately $106 million in cash and investments. As of Aug. 25, 1993, the company had approximately $70 million outstanding under its bank line of credit and $85 million drawn down under its asset securitization program.
 A Fortune 500 company, Dell Computer Corporation designs, develops, manufactures, markets, services and supports a complete line of personal computers compatible with industry standards. Dell pioneered the direct marketing of PCs in 1984 and was the first company in the PC industry to offer manufacturer-direct technical support. Dell is one of the fastest growing PC companies in the world, with fiscal 1993 revenues of $2 billion. Information on the company and its products can be obtained through its toll-free number: 1-800-BUY-DELL (1-800-289-3355).
 NOTE: Dell is a registered trademark of Dell Computer Corporation. Dell Computer Corporation disclaims any proprietary interest in the marks and names of others.
 -0- 8/26/93
 /CONTACT: Michele Moore, Roger Rydell, 512-728-4100; or (Investor Contacts) Don Collis, Ken Smith, 512-728-8671, 512-728-4034, all of Dell Computer Corporation/
 (DELL)


CO: Dell Computer Corporation ST: Texas IN: CPR SU: ECO

CM -- NE012 -- 6152 08/26/93 12:42 EDT
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Publication:PR Newswire
Date:Aug 26, 1993
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