DXC Technology redeems 2026 notes, issues €650M 2030 debt
DXC Technology Company is refinancing part of its debt.
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Rhea-AI Filing Summary
DXC Technology Company is refinancing part of its debt. The company has called for full redemption of its 1.750% Senior Notes due January 2026, covering €650 million of outstanding notes, with a redemption date of December 24, 2025 at 100% of principal plus accrued interest. It also plans a partial redemption of $300 million of its 1.800% Senior Notes due September 2026 on December 19, 2025, at 100% of principal plus a make-whole premium and accrued interest.
To support these actions, wholly owned subsidiary DXC Capital Funding DAC completed an offering of €650.0 million 4.250% Senior Notes due 2030, guaranteed by DXC and a Luxembourg affiliate. These unsecured senior notes pay 4.250% interest annually and mature on December 9, 2030. DXC expects net proceeds of about €632.4 million, which it intends to use to repay existing indebtedness, including the 2026 euro notes, and for working capital and general corporate purposes.
Insights
DXC refinances near-term 2026 debt with longer-dated 2030 euro notes.
DXC Technology is retiring near-term obligations and extending its maturity profile. It plans to redeem all €650 million of 1.750% notes due in January 2026 and $300 million of 1.800% notes due September 2026, both at 100% of principal plus accrued interest, with a make-whole premium on the dollar notes. This reduces refinancing risk around the 2026 maturities.
To fund this, DXC Capital Funding DAC issued €650.0 million of 4.250% Senior Notes due 2030, with net proceeds of about €632.4 million. The new notes are unsecured, unsubordinated and guaranteed by DXC and a key holding company, and bear a higher coupon than the 2026 euro notes, implying higher ongoing interest expense in exchange for longer-term funding.
The company states it intends to use proceeds to repay existing indebtedness, including the 2026 euro notes, and for working capital and general corporate purposes. The actual balance between debt paydown and other uses will influence future leverage and interest costs, and subsequent disclosures may detail how much of the remaining 2026 dollar notes is still outstanding after the partial redemption.
8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What debt is DXC (DXC) fully redeeming in this 8-K?
What is included in DXC's partial redemption of 1.800% Senior Notes due 2026?
What new notes did DXC (DXC) issue and on what terms?
How much net proceeds did DXC expect from the 2030 Notes offering?
How does DXC plan to use the proceeds from the 2030 Notes?
What happens to DXC's 2026 euro notes after the redemption date?
AI-generated analysis. How Rhea-AI works. Not financial advice.