By Cristal Cody
Tupelo, Miss., April 3 – Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. priced $2.25 billion of guaranteed first-lien senior secured notes (Baa3/BBB-/BBB-) in three tranches tighter than talk on Friday, according to a market source and news release.
The issuers sold $1 billion of 5.85% five-year notes at a spread of 550 basis points over Treasuries.
A $500 million tranche of 6.1% seven-year notes priced with a Treasuries plus 562.5 bps spread.
Also, $750 million of 6.2% 10-year notes were brought at a spread of 562.5 bps over Treasuries.
Initial price talk on all three tranches was in the Treasuries plus 612.5 bps area.
Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were bookrunners of the Rule 144A and Regulation S offering.
The notes are guaranteed by Dell Technologies, Denali Intermediate Inc., Dell Inc. and each of Denali Intermediate Inc.'s wholly owned domestic subsidiaries that guarantees obligations under the company's senior secured credit facilities.
Proceeds will be used for general corporate purposes, including debt repayment.
Dell is a Round Rock, Tex.-based information technology company.
| Issuers: | Dell International LLC and EMC Corp
|
| Guarantors: | Dell Technologies Inc., Denali Intermediate Inc., Dell Inc. and each of Denali Intermediate Inc.'s wholly owned domestic subsidiaries that guarantees obligations under the company's senior secured credit facilities.
|
| Amount: | $2.25 billion
|
| Description: | First-lien senior secured notes
|
| Bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Trade date: | April 3
|
| Settlement date: | April 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2025
|
| Coupon: | 5.85%
|
| Spread: | Treasuries plus 550 bps
|
| Price guidance: | Treasuries plus 612.5 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | July 15, 2027
|
| Coupon: | 6.1%
|
| Spread: | Treasuries plus 562.5 bps
|
| Price guidance: | Treasuries plus 612.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | July 15, 2030
|
| Coupon: | 6.2%
|
| Spread: | Treasuries plus 562.5 bps
|
| Price guidance: | Treasuries plus 612.5 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
