| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2017 > News item |
DXC to launch exchange offer, consent solicitation for Enterprise notes
By Marisa Wong
Morgantown, W.Va., Dec. 21 – DXC Technology Co. will offer to exchange all of the outstanding 7.45% senior notes due 2029 issued by Enterprise Services LLC for new 7.45% senior notes due 2029 issued by DXC, according to a prospectus filed with the Securities and Exchange Commission.
In exchange for each $1,000 principal amount of Enterprise notes tendered by the early consent date, holders will be eligible to receive $1,000 principal amount of DXC notes and an early consent payment of $50 in cash. Holders tendering after the early deadline will not receive the early consent payment.
No accrued interest will be paid on the Enterprise notes in connection with the exchange offer. However, the first interest payment for the DXC notes issued in the exchange will have accrued from the most recent interest payment date for the tendered Enterprise notes.
The early tender date and expiration date of the exchange offer have not yet been set.
As of Dec. 19, there was $300 million principal amount of Enterprise notes outstanding.
Concurrently with the exchange offer, DXC will also solicit consents to amend the Enterprise notes. The proposed amendments will, among other things, eliminate substantially all of the restrictive covenants and eliminate some events of default.
The proposed amendments will require consents from holders of a majority of the outstanding principal amount of the Enterprise notes.
Holders tendering their notes for exchange will be deemed to have delivered their consents to the proposed amendments. Holders will not be able to consent to the proposed amendments without tendering their notes in the exchange offer.
Holders will be able to revoke consents and withdraw their tenders at any time prior to the early tender date.
Global Bondholder Services Corp. will act as exchange agent and information agent.
Based in Tysons, Va., DXC provides digital information technology services and solutions.
© 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.