8-KMaterial AgreementsFinancial EventsExhibits & Filings

Dell Technologies Inc. 8-K Report, Material Agreement (Mar 9, 2017)

Filed March 9, 2017For Securities:DELL

Summary

Dell Technologies Inc. (DELL) filed an 8-K on March 9, 2017, to report on a material amendment to its senior secured credit agreement. This filing primarily details a refinancing and incremental facility amendment that occurred on March 8, 2017. The company has effectively replaced its existing Term Loan B facility with a new one, increasing the principal amount and adjusting interest rate margins. This action is a key part of Dell's ongoing financial strategy following its acquisition of EMC.

Key Highlights

  • 1Dell Technologies Inc. refinanced its Senior Secured Credit Agreement, specifically its Term Loan B facility.
  • 2The principal amount of the term loan facility was increased from $5,000,000,000 to $5,487,500,000.
  • 3The new term loan facility has a maturity date of September 7, 2023, consistent with the original facility.
  • 4Interest rate margins on the new term loan facility have decreased, with LIBOR + 2.50% or base rate + 1.50% compared to the previous terms.
  • 5The proceeds from the increased loan amount were used to pay down a portion of the existing margin facility ($500 million out of $2.5 billion) and cover related fees and expenses.
  • 6The amendment reflects a strategic financial move to optimize the company's debt structure post-EMC acquisition.

Frequently Asked Questions

This 8-K filing announces a material definitive agreement, specifically a refinancing and incremental facility amendment to Dell Technologies' Senior Secured Credit Agreement. It details the changes to their Term Loan B facility.

The company increased its Term Loan B facility by $500 million, bringing the total principal amount to $5,487,500,000. The interest rate margins have also been reduced, making the new debt slightly more favorable in terms of cost.

The proceeds from the $500 million increase were used to pay down $500 million of the principal outstanding under an existing margin facility obtained from a credit agreement dated September 7, 2016, and to cover associated fees and expenses.

No, the maturity date for the new senior secured term loan B facility remains the same as the original facility, which is September 7, 2023.