What is the total amount of debt Dell Technologies issued in this offering?

Dell Technologies issued a total of $2 billion in aggregate principal amount of senior notes. This is comprised of $1 billion of 5.250% Senior Notes due 2028 and $1 billion of 5.750% Senior Notes due 2033.

Who are the guarantors of these new notes?

The new notes are guaranteed on a joint and several unsecured basis by Dell Technologies Inc., Denali Intermediate, Inc., and Dell Inc.

What are the key terms and conditions for these notes, such as interest payments and maturity dates?

The 2028 Notes have a coupon rate of 5.250% and mature on February 1, 2028. Interest is payable semi-annually starting August 1, 2023. The 2033 Notes have a coupon rate of 5.750% and mature on February 1, 2033. Interest is also payable semi-annually starting August 1, 2023. Both series of notes can be redeemed under specific conditions prior to maturity at a 'make-whole' premium, and at par on or after certain dates leading up to maturity. A change of control triggering event allows holders to require repurchase at 101% of the principal amount.

What are the implications of these new debt obligations for Dell's financial health?

This $2 billion debt issuance increases Dell's overall leverage and future interest payment obligations. Investors should analyze these new obligations in conjunction with Dell's existing debt, cash flows, and profitability to assess the company's capacity to service this new debt and maintain its financial flexibility. The covenants provide some protection to bondholders by restricting certain corporate actions, which can indirectly benefit shareholders by safeguarding asset value and financial stability.

DELL 8-K: Material Agreements & Financial Events

Summary

Dell Technologies Inc. (DELL) announced on January 24, 2023, the completion of a public offering of senior notes, raising a total of $2 billion. The offering consisted of $1 billion in 5.250% Senior Notes due 2028 and $1 billion in 5.750% Senior Notes due 2033. These notes are senior unsecured obligations issued by Dell International L.L.C. and EMC Corporation, and are guaranteed by Dell Technologies Inc., Denali Intermediate, Inc., and Dell Inc. The company has utilized a shelf registration statement for this issuance, indicating proactive capital management and access to public debt markets. This debt issuance is significant for investors as it provides insight into Dell's financing strategy and its ongoing capital structure management. The interest rates and maturity dates of the notes, along with the covenants and change of control provisions, are crucial for assessing the company's financial obligations and risk profile. The proceeds from the offering are not specified in this filing but are typically used for general corporate purposes, refinancing existing debt, or funding strategic initiatives. Investors should consider these new debt obligations in the context of Dell's overall financial health and its ability to service its debt.

Key Highlights

1Dell completed a $2 billion public offering of senior unsecured notes on January 24, 2023.
2The offering included $1 billion of 5.250% Senior Notes due 2028.
3The offering also included $1 billion of 5.750% Senior Notes due 2033.
4The notes are issued by Dell International L.L.C. and EMC Corporation.
5The notes are guaranteed by Dell Technologies Inc., Denali Intermediate, Inc., and Dell Inc.
6The issuance was conducted under a Form S-3ASR shelf registration statement.
7Covenants include limitations on liens, asset disposals, and sale-leaseback transactions, along with a change of control provision.

Dell Technologies Inc. 8-K Report, Material Agreement (Jan 24, 2023)

Summary

Key Highlights

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