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Dell Technologies Inc. 8-K Report, Financial Obligation (Jul 18, 2022)

Filed July 18, 2022For Securities:DELL

Summary

Dell Technologies Inc. (DELL) announced on July 18, 2022, the establishment of a commercial paper program allowing its indirect wholly owned subsidiaries, Dell International L.L.C. and EMC Corporation, to issue unsecured promissory notes. This program has a maximum aggregate face amount of $5.0 billion outstanding at any time and maturities not exceeding 397 days. The notes will be fully and unconditionally guaranteed by Dell Technologies Inc. and two of its direct and indirect wholly owned subsidiaries, Denali Intermediate Inc. and Dell Inc. This demonstrates Dell's commitment to maintaining robust liquidity and financial flexibility. The proceeds from the issuance of these notes are intended for general corporate purposes, underscoring the company's ongoing operational needs and strategic initiatives.

Key Highlights

  • 1Dell Technologies Inc. established a $5.0 billion commercial paper program.
  • 2The program allows for unsecured promissory notes to be issued by subsidiaries Dell International L.L.C. and EMC Corporation.
  • 3Notes will have maturities of up to 397 days.
  • 4The commercial paper program is fully and unconditionally guaranteed by Dell Technologies Inc. and subsidiaries Denali Intermediate Inc. and Dell Inc.
  • 5Proceeds are designated for general corporate purposes.
  • 6The notes will rank equal with other unsecured senior indebtedness of the obligors.
  • 7The offering is conducted on a private placement basis in the U.S. commercial paper market.

Frequently Asked Questions

The commercial paper program allows Dell Technologies to access short-term funding for its general corporate purposes. This provides financial flexibility and ensures liquidity for ongoing operations and strategic initiatives.

The program allows for a maximum aggregate face amount of $5.0 billion to be outstanding at any time.

The co-issuers of the notes are Dell's indirect wholly owned subsidiaries, Dell International L.L.C. and EMC Corporation. The notes are fully and unconditionally guaranteed by Dell Technologies Inc., Denali Intermediate Inc., and Dell Inc.

The notes issued under this program will rank equal in right of payment with all other unsecured senior indebtedness of the obligors. This means they have the same priority as other unsecured debt but are subordinate to secured debt.