Summary
Dell Technologies Inc. (DELL) has announced the completion of a public offering of senior unsecured notes, raising a total of $1.5 billion. The offering consisted of $700 million in 4.350% Senior Notes due 2030 and $800 million in 4.850% Senior Notes due 2035. These notes are guaranteed by Dell Technologies Inc. and its subsidiaries Denali Intermediate Inc. and Dell Inc., ranking equally with existing senior indebtedness of the issuers and guarantors. This financing activity suggests Dell is potentially refinancing existing debt, managing its capital structure, or funding ongoing operations and strategic initiatives. Investors should note that the new notes are structurally subordinated to debt at subsidiaries that do not provide guarantees, meaning those entities' creditors would have a prior claim on their assets. The indenture includes customary covenants and events of default, as well as a provision for a change of control repurchase at 101% of principal.
Key Highlights
- 1Dell Technologies Inc. raised $1.5 billion through a public offering of senior unsecured notes.
- 2The offering includes $700 million of 4.350% Senior Notes due 2030.
- 3The offering also includes $800 million of 4.850% Senior Notes due 2035.
- 4The notes are guaranteed by Dell Technologies Inc., Denali Intermediate Inc., and Dell Inc.
- 5The notes are senior unsecured obligations of the Issuers and rank equally with existing and future senior indebtedness.
- 6The notes are structurally subordinated to indebtedness of non-guarantor subsidiaries.
- 7The indenture includes standard covenants, events of default, and a change of control repurchase feature.