Dell bond sale raises $1.5 billion

Dell Inc., trying to regain its position as the largest maker of personal computers from rival Hewlett-Packard Co., raised $1.5 billion in its first bond offering in a decade.

The company, which 23 years ago pioneered selling custom-made PCs directly to customers, is tripling its debt load as Chief Executive Michael Dell attempts to revive profits by selling more machines in stores, offering fewer model choices and closing a factory in Texas.

Dell may also need to issue more debt if it provides additional customer financing, according to Fitch Ratings.

Based in Round Rock, Texas, Dell follows software maker Oracle Corp. in coming to the bond market this month as investors seek alternatives to financial debt that has tumbled in value. Oracle raised $5 billion in its largest offering in two years.

“Large tech companies have started to use a little more leverage over the last couple years,” said Jayson Noland, an analyst with Robert W. Baird & Co. in Milwaukee.