By Cristal Cody
Chicago, Sept. 7 – DXC Technology Co. sold $1.35 billion of senior notes (Baa2/BBB-/BBB) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $700 million of five-year senior notes with a 1.8% coupon at 99.9 to yield 1.821%. The tranche priced with a spread over Treasuries of 100 basis points. The notes had been noted by a market source in the Treasuries plus 115 bps area Tuesday morning.
The second tranche of notes consists of $650 million of 2.375% seven-year senior notes that priced at 99.91 to yield 2.389%. The tranche priced with a spread of 125 bps over Treasuries, again low to the Treasuries plus 135 bps area price talk.
The notes are callable at par plus a make whole premium.
The premium on the five-year notes is Treasuries plus 15 bps. The series can be called at par one month before the maturity date.
The premium on the seven-year notes is Treasuries plus 20 bps. The series can be called at par two months before their maturity date.
BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA Inc. and MUFG are the bookrunners.
Senior lead managers were Commerz Markets LLC, NatWest Markets Securities Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
Lead managers were BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Danske Markets Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC.
Proceeds will be used to repay, in whole or in part, the company’s 4.125% notes due 2025, 4.75% notes due 2027 and 7.45% notes due 2029, with the remainder applied to other existing debt.
Based in McLean, Va., DXC provides digital information technology services and solutions.
| Issuer: | DXC Technology Co.
|
| Issue: | Senior notes
|
| Amount: | $1.35 billion
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA Inc. and MUFG
|
| Senior lead managers: | Commerz Markets LLC, NatWest Markets Securities Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Lead managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Danske Markets Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | ING Financial Markets LLC, KBC Securities USA LLC, RB International Markets (USA) LLC, Siebert Williams Shank & Co., LLC, Standard Chartered Bank, U.S. Bancorp Investments, Inc., Academy Securities, Inc. and R. Seelaus & Co., LLC
|
| Trade date: | Sept. 7
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $700 million
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 1.8%
|
| Price: | 99.9
|
| Yield: | 1.821%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; par call starting Aug. 15, 2026
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 23355LAL0
|
|
|
| Seven-year notes
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| Amount: | $650 million
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| Maturity: | Sept. 15, 2028
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| Coupon: | 2.375%
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| Price: | 99.91
|
| Yield: | 2.389%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call starting July 15, 2028
|
| Price talk: | Treasuries plus 135 bps area
|
| Cusip: | 23355LAM8
|
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