Published on 3/5/2024 in the Prospect News Investment Grade Daily.
New Issue: Dell Technologies units sell $1 billion 5.4% 10-year notes at Treasuries plus 120 bps
By Mary-Katherine Stinson
Lexington, Ky., March 5 – Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. priced $1 billion offering of 5.4% senior notes due April 15, 2034 (Baa2/BBB/BBB) on Monday, according to a 424B3 filing with the Securities and Exchange Commission.
As with previous offerings, the notes are guaranteed by the company and its subsidiaries Denali Intermediate Inc. and Dell Inc.
The notes priced at 99.802 to yield 5.425%, or Treasuries plus 120 basis points.
The notes are callable at Treasuries plus 20 bps before Jan. 15, 2034, followed by par call. There is a change-of-control put at 101.
The joint bookrunners, listed in tiered alphabetical order, are Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC and UBS Securities LLC.
Proceeds will be used to repay a portion of the company’s outstanding 6.02% senior notes due June 15, 2026.
The computer and software company is based in Round Rock, Tex.
| Issuers: | Dell International LLC and EMC Corp.
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| Guarantors: | Denali Intermediate Inc. and Dell Inc.
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| Amount: | $1 billion
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| Issue: | Senior notes
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| Maturity: | April 15, 2034
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| Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC and UBS Securities LLC
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| Co-managers: | BNY Mellon Capital Markets, LLC, ING Financial Markets LLC, Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank and Truist Securities, Inc.
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| Co-syndicate managers: | Samuel A. Ramirez & Co., Inc. and Telsey Advisory Group 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: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.4%
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| Price: | 99.802
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| Yield: | 5.425%
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| Spread: | Treasuries plus 120 bps
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| Call features: | At Treasuries plus 20 bps before Jan. 15, 2034; after at par
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| Change of control: | At 101
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| Trade date: | March 4
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| Settlement date: | March 18
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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
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| Cusip: | 24703DBN0
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