DXC Technology Completes Refinancing Actions

Rhea-AI Summary

DXC Technology (NYSE: DXC) has successfully completed its refinancing process, which involved offering €1.35 billion and $1.35 billion in Senior Notes. The company redeemed $2.5 billion of high coupon debt, including EUR term loans and multiple Senior Notes, amounting to a make whole premium of $300 million and accrued interest of $40 million. CFO Ken Sharp highlighted that this refinancing enhances their financial stability by extending debt maturities and reducing interest expenses. DXC's operations focus on supporting global enterprises in optimizing IT and enhancing competitive performance.

Positive

• Successful refinancing of $2.5 billion high coupon debt strengthens financial position.
• Extended debt maturities reduce future financial risks and interest expenses.

Negative

• None.

TYSONS, Va.--(BUSINESS WIRE)-- DXC Technology Company (NYSE: DXC) (“DXC”) today announced the completion of its refinancing. DXC previously completed the offering of €1.35 billion Senior Notes priced on September 2, 2021 and $1.35 billion Senior Notes priced on September 7, 2021.

DXC completed redemption of $2.5 billion principal of (i) EUR term loan in the amount of €400 million due FY23 and FY24, (ii) $500 million 4.25% Senior notes due FY25, (iii) £250 million 2.75% Senior notes due FY25, (iv) $467 million 4.125% Senior notes due FY26, (v) $500 million 4.75% Senior notes due FY28, and (vi) $234 million Senior notes due FY30. The applicable make whole premium for these redemptions was $300 million and accrued and unpaid interest was $40 million.

Ken Sharp, Chief Financial Officer, DXC commented: “Our opportunistic debt refinancing of $2.5 billion of our high coupon debt further solidifies our financial foundation by extending our debt maturities, lowering our maturity towers and reducing our ongoing interest expense.”

ABOUT DXC TECHNOLOGY

DXC Technology (NYSE: DXC) helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world’s largest companies and public sector organizations trust DXC to deploy services across the Enterprise Technology Stack to drive new levels of performance, competitiveness, and customer experience.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the coronavirus disease 2019 pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate. For a written description of these factors, see the section titled “Risk Factors” in DXC’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021, and any updating information in subsequent SEC filings, including DXC’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021.

No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events except as required by law.

Source: DXC Technology
Category: Investor Relations

View source version on businesswire.com: https://www.businesswire.com/news/home/20210924005539/en/

Richard Adamonis, Corporate Media Relations, +1-862-228-3481, radamonis@dxc.com

John Sweeney, Investor Relations, +1-980-315-3665, john.sweeney@dxc.com

Source: DXC Technology

FAQ

What was the purpose of DXC's recent refinancing announcement?

DXC aimed to strengthen its financial position by refinancing $2.5 billion in high coupon debt.

How much high coupon debt did DXC redeem?

DXC redeemed $2.5 billion of high coupon debt through its refinancing.

What types of debt were included in DXC's refinancing?

The refinancing included EUR term loans and several series of Senior Notes totaling $2.5 billion.

What financial impact does DXC's refinancing have on its future?

The refinancing extends debt maturities and reduces ongoing interest expenses, enhancing DXC's financial stability.

What is the significance of the make whole premium in DXC's debt redemption?

The make whole premium of $300 million indicates a cost associated with redeeming the high coupon debt early.