Published on 1/9/2023 in the Prospect News Investment Grade Daily.
New Issue: Dell Technologies units sell $2 billion senior notes due 2028, 2033
By Wendy Van Sickle
Columbus, Ohio, Jan. 9 – Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. priced $2 billion of guaranteed senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The notes will be guaranteed by the company and its subsidiaries Denali Intermediate Inc. and Dell Inc.
The company priced a $1 billion tranche of 5.25% notes due Feb. 1, 2028 at 99.955 to yield 5.26% with a spread of Treasuries plus 160 basis points.
The issuers priced a $1 billion tranche of 5.75% notes due Feb. 1, 2033 at 99.788 to yield 5.778% with a spread of Treasuries plus 225 bps.
Bookrunners are Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC.
Proceeds will be used to repay the 5.45% senior notes due 2023 with any remaining proceeds used for general corporate purposes, including the repayment of other debt.
The computer and software company is based in Round Rock, Tex.
| Issuers: | Dell International LLC and EMC Corp.
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| Guarantors: | Dell Technologies Inc., Denali Intermediate Inc. and Dell Inc.
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| Amount: | $2 billion
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| Issue: | Senior notes
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| Bookrunners: | Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, ING Financial Markets LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank and Truist Securities, Inc.
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| Co-syndicate managers: | Roberts & Ryan Investments Inc. and Siebert Williams Shank & Co., LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Simpson Thacher & Bartlett LLP
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| Counsel to underwriters: | Cahill Gordon & Reindel LLP
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| Put: | Change-of-control put at 101
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| Trade date: | Jan. 9
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| Settlement date: | Jan. 24
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $1 billion
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| Maturity: | Feb. 1, 2028
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| Coupon: | 5.25%
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| Price: | 99.955
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| Yield: | 5.26%
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| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Jan. 1, 2028, then a par call
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| Cusip: | 24703DBJ9
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|
|
| 10-year notes
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| Amount: | $1 billion
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| Maturity: | Feb. 1, 2033
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| Coupon: | 5.75%
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| Price: | 99.788
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| Yield: | 5.778%
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| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Nov. 1, 2032, then a par call
|
| Cusip: | 24703DBL4
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