Dell Technologies Announces Offering of Senior Notes
Dell Technologies (NYSE: DELL) announced a private offering of Senior Notes by Dell International and EMC Corporation. The proceeds will primarily fund the repurchase of existing notes through tender offers and remaining funds will be allocated for general corporate purposes, including debt repayment. The offering is limited to qualified institutional buyers in the U.S. and is exempt from registration requirements under the Securities Act. This move signifies Dell's strategic efforts to manage its debt portfolio effectively.
- Proceeds from the Senior Notes will be used for repurchasing existing notes, potentially improving the company's debt position.
- Any leftover funds will help in general corporate purposes, including further debt repayment.
- The private offering of Senior Notes may lead to dilution of existing shareholder value.
- The offering is limited to qualified investors, which may restrict broader market engagement.
ROUND ROCK, Texas, Dec. 6, 2021 /PRNewswire/ -- Dell Technologies Inc. (NYSE: DELL) (the "Company" or "Dell Technologies") announces the commencement of a private offering of Senior Notes (the "Notes") to be issued by two of its wholly-owned subsidiaries, Dell International L.L.C. and EMC Corporation, as co-issuers (the "co-issuers"). The Notes will be guaranteed on a joint and several basis by Dell Technologies, Denali Intermediate Inc. and Dell Inc.
The net proceeds from the offering of the Notes are intended to be used to fund the repurchase of certain existing notes of its subsidiaries pursuant to certain tender offers being conducted by Dell Inc., a wholly-owned subsidiary of the Company. Any remaining proceeds not used to repurchase such existing notes in such tender offers will be used for general corporate purposes, including the repayment of debt.
The offering of the Notes will be made in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), in the United States only to persons reasonably believed to be "qualified institutional buyers," as that term is defined in Rule 144A under the Securities Act, or outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Dell Technologies
Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.
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SOURCE Dell Technologies
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