By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Dec. 6 – Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. priced $2.25 billion of guaranteed senior notes (BBB/BBB) in two tranches on Monday in a Rule 144A and Regulation S offering, according to a market source and additional details from a press release.
The notes will be guaranteed by the company and its subsidiaries Denali Intermediate Inc. and Dell Inc.
The company priced a $1 billion tranche of 3.375% notes due Dec. 15, 2041, which priced with a spread of Treasuries plus 155 basis points and was talked to yield in the Treasuries plus 187.5 bps area.
The issuers priced a $1.25 billion tranche of 3.45% notes due Dec. 15, 2051 at Treasuries plus 170 bps, which was talked in the 200 bps area over Treasuries.
Further details were not available at press time.
Bookrunners are BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to repurchase some of Dell’s subsidiaries’ notes in tender offers.
The computer and software company is based in Round Rock, Tex.
| Issuers: | Dell International LLC and EMC Corp.
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| Guarantors: | Dell Technologies Inc., Denali Intermediate Inc. and Dell Inc.
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| Amount: | $2.25 billion
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| Securities: | Senior notes
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| Bookrunners: | BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC
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| Trade date: | Dec. 6
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| Settlement date: | Dec. 13
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| Ratings: | S&P: BBB
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| Fitch: BBB
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| Distribution: | Rule 144A and Regulation S
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| 20-year notes
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| Amount: | $1 billion
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| Maturity: | Dec. 15, 2041
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| Coupon: | 3.375%
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| Spread: | Treasuries plus 155 bps
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| Price talk: | Treasuries plus 187.5 bps area
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| 30-year notes
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| Amount: | $1.25 billion
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| Maturity: | Dec. 15, 2051
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| Coupon: | 3.45%
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| Spread: | Treasuries plus 170 bps
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| Price talk: | Treasuries plus 200 bps area
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