DXC Technology borrows remaining $2.5 billion under revolver

By Sarah Lizee

Olympia, Wash., April 2 – DXC Technology Co. borrowed $2.5 billion under its multi-currency revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

Together with the $1.5 billion previously borrowed on March 24, the company will have borrowed the full $4 billion available under the credit agreement.

The company may repay amounts borrowed any time without penalty.

DXC said it elected to borrow the entire amount available under the credit agreement as a precautionary measure to increase its cash position and increase financial flexibility in light of continuing uncertainty in the global economy and financial capital markets resulting from the Covid-19 outbreak.

The company expects to use the proceeds from the borrowings under the credit agreement for working capital, general corporate purposes or other purposes permitted under the credit agreement.

Under the revolver, $3.93 billion of the commitments mature on Jan. 15, 2025 and $70 million mature on Jan. 15, 2024.

The Tysons, Va.-based company provides digital information technology services and solutions.

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