Dell (NYSE: DELL) signs $6B unsecured revolving credit facility
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Dell Technologies Inc. entered into a new senior unsecured revolving credit facility on June 10, 2026. The Credit Agreement provides Dell International L.L.C. and EMC Corporation with revolving commitments totaling $6,000,000,000, including a letter of credit sub-facility of up to $500,000,000, maturing on June 10, 2031.
Borrowings may be used by Dell Inc. and its subsidiaries for general corporate purposes and will bear interest at a margin over either a specified SOFR-based rate or a base rate, with the margin tied to the company’s credit ratings. The facility can be repaid voluntarily at any time without premium or penalty, other than customary breakage costs.
In connection with this new Credit Agreement, Dell International and EMC fully repaid all outstanding obligations under the prior November 1, 2021 credit agreement and terminated all related obligations and commitments, leaving no further obligations under the existing facility or its guarantees.
Positive
- None.
Negative
- None.
8-K Event Classification
4 items: 1.01, 1.02, 2.03, 9.01
4 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 1.02
Termination of a Material Definitive Agreement
Business
A significant contract was terminated, which may affect business operations or revenue.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revolving commitments: $6,000,000,000
Letter of credit sub-facility: $500,000,000
Incremental commitment minimum: $10,000,000
+2 more
5 metrics
Revolving commitments
$6,000,000,000
Aggregate principal amount under new Credit Agreement
Letter of credit sub-facility
$500,000,000
Maximum letter of credit capacity within new facility
Incremental commitment minimum
$10,000,000
Minimum size for requested incremental commitments
Maturity date
June 10, 2031
Final maturity of new revolving credit facility
Agreement date
June 10, 2026
Date Dell entered the new Credit Agreement
Key Terms
senior unsecured revolving credit facility, Secured Overnight Financing Rate, base rate, letter of credit sub-facility, +1 more
5 terms
senior unsecured revolving credit facility financial
"which provides for a senior unsecured revolving credit facility"
A senior unsecured revolving credit facility is a bank loan line that a company can draw, repay and redraw up to an agreed limit, similar to a company credit card. It is “senior” because lenders are paid before other creditors if the company fails, and “unsecured” because it isn’t backed by specific assets; investors watch it for signals about a company’s short-term cash flexibility, borrowing cost and financial risk.
Secured Overnight Financing Rate financial
"either (a) the specified Secured Overnight Financing Rate (“SOFR”) or (b) a base rate"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
base rate financial
"plus, at the borrowers’ option, either (a) the specified SOFR or (b) a base rate"
The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.
letter of credit sub-facility financial
"with a letter of credit sub-facility of up to $500,000,000"
incremental commitments financial
"The Credit Agreement also allows Dell International and EMC to request incremental commitments"
FAQ
What new credit facility did Dell (DELL) establish on June 10, 2026?
Dell Technologies entered a senior unsecured revolving credit facility providing $6,000,000,000 in total commitments. The agreement includes Dell International and EMC as borrowers and is arranged with JPMorgan Chase Bank as administrative agent, supporting general corporate funding flexibility.
When does Dell’s new $6 billion revolving credit facility mature?
The new revolving credit facility for Dell International and EMC matures on June 10, 2031. This five-year term provides a medium‑term liquidity backstop for the group’s operations and general corporate purposes, replacing the previous 2021 credit agreement structure.
How will Dell and its subsidiaries use the proceeds from the new Credit Agreement?
Proceeds from loans under the new Credit Agreement will be used by Dell Inc. and its subsidiaries for general corporate purposes. This broad wording typically covers working capital, capital expenditures, and other routine business needs as determined by management over time.
What interest rates apply to borrowings under Dell’s new Credit Agreement?
Borrowings accrue interest at a margin over either a specified SOFR rate or a base rate, at the borrowers’ option. The applicable margin for both SOFR and base rate loans varies based on Dell Technologies’ current credit ratings, linking borrowing costs to its credit quality.
What happened to Dell’s prior 2021 credit agreement after the new facility?
On entering the new Credit Agreement, Dell International and EMC repaid all outstanding obligations under the November 1, 2021 credit agreement and terminated all commitments. As a result, they and the guarantors have no remaining obligations under that existing facility or its related guarantees.
Does Dell face prepayment penalties on the new revolving credit facility?
Borrowings under the new Credit Agreement may be voluntarily repaid at any time without premium or penalty. The only exception is customary breakage costs that might arise from early repayment of certain interest‑bearing borrowings before their scheduled interest periods end.