01—Abstract
Summary
Summary of the 8-K filed April 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Dell Technologies Inc. (DELL) filed an 8-K to report the unregistered sale of equity securities, specifically the conversion of Class B common stock into Class C common stock by SL SPV-2, L.P. and various Silver Lake Partners entities.
A total of 4,237,699 shares of Class C common stock were issued upon conversion of an equal number of Class B shares on multiple dates between March 2, 2026, and April 16, 2026. This conversion activity, involving significant holders of Class B stock, results in an updated share count, with 325,654,621 shares of Class C common stock and 47,789,758 shares of Class B common stock outstanding as of April 17, 2026.
The report clarifies that these conversions were made without registration under the Securities Act of 1933, relying on an exemption, and notes that future conversions are also expected to follow this exemption. Investors should note that Class B and Class C shares have equivalent dividend and liquidation rights, implying no immediate change in economic rights for these converted shares.
02—Key points
Key Highlights
- Dell Technologies Inc. reported the conversion of 4,237,699 shares of Class B common stock into Class C common stock.
- The conversion was carried out by SL SPV-2, L.P. and several Silver Lake Partners entities.
- The conversions occurred on various dates between March 2, 2026, and April 16, 2026.
- As of April 17, 2026, Dell has 325,654,621 Class C shares and 47,789,758 Class B shares outstanding.
- The issuance of Class C shares was made without registration, relying on exemption Section 3(a)(9) of the Securities Act of 1933.
- Class B and Class C common stock share identical dividend and liquidation rights.
- Future conversions of Class B to Class C stock are also expected to utilize the same registration exemption.
03—Questions
Frequently Asked Questions
What was the primary reason for this 8-K filing?
The primary reason for this 8-K filing was to report the conversion of a significant number of Class B common stock shares into Class C common stock by specific holders, namely SL SPV-2, L.P. and various Silver Lake Partners entities. This conversion occurred without a public offering and relied on a specific exemption from registration requirements.
Does this conversion affect the total number of outstanding shares or the company's market capitalization?
This filing specifically details a conversion of one class of common stock into another class of common stock. While the total number of outstanding shares changes in terms of the breakdown between Class B and Class C, it does not change the total equity capital structure of the company. Therefore, it is unlikely to have a direct impact on the company's market capitalization unless the market perceives a change in the underlying value or voting rights associated with the different classes.
Are the Class B and Class C common stocks economically different?
No, according to the filing, each share of Class C common stock bears the same dividend and liquidation rights as one share of Class B common stock. This implies that, from an economic perspective concerning dividends and dissolution payouts, there is no distinction between the two classes of shares after conversion.
Why did Dell rely on an exemption from registration for this stock issuance?
Dell relied on the exemption from registration under Section 3(a)(9) of the Securities Act of 1933 because this transaction involved the conversion of one class of its own securities (Class B common stock) into another class of its own securities (Class C common stock) by existing security holders. This type of transaction is typically exempt from registration as it is not considered a public offering of new securities.
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