8-KMaterial AgreementsFinancial EventsExhibits & Filings

Dell Technologies Inc. 8-K Report, Material Agreement (Jun 10, 2026)

Filed June 10, 2026For Securities:DELL

Summary

Dell Technologies Inc. (DELL) announced on June 10, 2026, the entry into a new senior unsecured revolving credit facility. This new facility, totaling $6 billion, replaces an existing credit agreement which has been fully repaid and terminated. The new credit agreement provides enhanced financial flexibility for Dell International L.L.C. and EMC Corporation, with a maturity date of June 10, 2031. This strategic move allows the company to access significant liquidity for general corporate purposes, signaling a commitment to operational strength and potential future investments. The flexibility in borrowing rates, tied to the Company's credit ratings, and the ability to repay voluntarily without penalty, are key features designed to optimize financing costs and capital management. Investors can view this as a positive step in maintaining a robust liquidity position.

Key Highlights

  • 1New $6 billion senior unsecured revolving credit facility entered into on June 10, 2026.
  • 2Existing credit agreement fully repaid and terminated, reducing prior financial obligations.
  • 3Facility matures on June 10, 2031, providing long-term liquidity.
  • 4Borrowers include Dell International L.L.C. and EMC Corporation.
  • 5Proceeds to be used for general corporate purposes, offering financial flexibility.
  • 6Interest rates are based on applicable margin plus SOFR or a base rate, tied to credit ratings.
  • 7Voluntary repayment without premium or penalty (other than customary breakage costs) is permitted.

Frequently Asked Questions

The primary purpose of the new credit agreement is to provide Dell Technologies Inc. with a $6 billion revolving credit facility to fund general corporate purposes. This ensures the company has access to significant liquidity for its ongoing operations and potential strategic initiatives.

The new credit facility replaces a previous credit agreement. On June 10, 2026, Dell International L.L.C. and EMC Corporation fully repaid all outstanding obligations and terminated commitments under the prior agreement. This effectively streamlines and potentially reduces the company's debt structure.

The new facility is a senior unsecured revolving credit facility with an aggregate principal amount of $6 billion and a maturity date of June 10, 2031. It includes a letter of credit sub-facility of up to $500 million. Interest rates are variable, based on an applicable margin plus either SOFR or a base rate, determined by the company's credit ratings. Borrowings can be voluntarily repaid at any time without penalty, except for customary breakage costs.

Yes, the applicable margin for both SOFR and base rate borrowings varies based on Dell Technologies Inc.'s existing credit ratings. This means the cost of borrowing can fluctuate depending on the company's creditworthiness as assessed by rating agencies.