Dell’s tender offers for up to $1 billion of notes oversubscribed

By Angela McDaniels

Tacoma, Wash., June 29 – Dell Technologies Inc. said subsidiary Dell Inc.’s tender offers for up to $1 billion principal amount of five series of notes was oversubscribed as of the early tender deadline.

Holders had tendered $2,089,943,000 principal amount of Dell International LLC and EMC Corp.’s $4.5 billion outstanding 6.02% senior notes due 2026, which have an acceptance priority level of one, as of 5 p.m. ET on June 29, the early tender deadline.

Because the amount of notes tendered exceeds the tender cap, Dell does not expect to accept for purchase any notes tendered after the early tender deadline or any notes tendered with acceptance priority levels two through five, according to a company news release.

The purchase price for the 6.02% notes will be set at 10 a.m. ET on June 30 by reference to the 4.125% U.S. Treasury due June 15, 2026 and a fixed spread of 90 basis points.

The early settlement date is expected to be July 5.

As previously reported, the tender offers began June 15 and were scheduled to expire at 5 p.m. ET on July 17.

Dell offered to purchase the 6.02% notes and the following series, also issued by Dell International and EMC:

• $1.75 billion outstanding 4.9% senior notes due 2026;

• $1 billion outstanding 4% senior notes due 2024;

• $1 billion outstanding 5.85% senior notes due 2025; and

• $500 million outstanding 6.1% senior notes due 2027.

The total consideration includes an early tender premium of $50 for each $1,000 principal amount of notes tendered by the early tender deadline.

In addition, the company will pay accrued interest.

The offers are subject to some conditions but were not conditioned on any minimum amount of securities being tendered.

Barclays (800 438-3242), Citigroup Global Markets, Inc. (800 558-3745) or J.P. Morgan Securities LLC (866 834-4666) are dealer managers for the offer.

The information agent and tender agent is Global Bondholder Services Corp. (855 654-2015 or, for banks and brokers, 212 430-3774; contact@gbsc-usa.com).

Dell is a technology company based in Round Rock, Texas.

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