1. DXC plans to redeem €650 million of Euro Notes by December 2025. 2. DXC will partially redeem $300 million of USD Notes by December 2025. 3. The redemptions aim to improve future liquidity and capital structure. 4. Interest on redeemed notes will cease, enhancing financial stability. 5. DXC's current operations may not be directly affected by this move.
FAQ
Why Bullish?
The redemption of debt can enhance financial stability, similar to past examples where companies benefitted from reducing their liabilities, which can positively impact their stock prices.
How important is it?
Reducing debt positions DXC favorably, signaling sound financial management which can attract investors and stabilize stock performance.
Why Long Term?
While the direct impacts are short-term, improved capital structure could boost long-term investor confidence and valuation.
DXC Technology Announces Redemption Plans for Senior Notes
DXC Technology Company (NYSE: DXC) has officially announced its strategy to redeem a total of €650 million in 1.750% Senior Notes due January 2026, alongside a partial redemption of $300 million in 1.800% Senior Notes due September 2026. The announcement was made on December 9, 2025, detailing the timelines and terms for these financial moves.
Details of the Redemption
The redemption will involve two significant components:
- Full redemption of the 2026 Euro Notes amounting to €650 million.
- Partial redemption of $300 million of the 2026 USD Notes.
The redemption date for the 2026 Euro Notes will occur on December 24, 2025, while the 2026 USD Notes will be redeemed on December 19, 2025.
Redemption Pricing and Impact
The redemption price for the 2026 Euro Notes will be set at 100% of the principal amount, plus any accrued and unpaid interest up to but not including the redemption date. Following the redemption date, these Euro Notes will cease to be considered outstanding and will be delisted from the New York Stock Exchange.
For the 2026 USD Notes, the redemption price will similarly reflect 100% of the principal amount, but will also include a make-whole premium as specified in the indenture, as well as accrued interest to the redemption date. After the redemption date, interest on these notes will no longer accrue unless DXC defaults in payment.
Regulatory Information
This announcement serves as an initial notification and does not constitute a formal notice of redemption. Additionally, it should not be interpreted as an offer to sell or the solicitation of any buy offers for the 2026 Euro Notes or the 2026 USD Notes, nor does it constitute a sale in any state or jurisdiction where such actions would be unlawful without prior registration or qualification.
About DXC Technology
DXC Technology (NYSE: DXC) stands as a prominent global provider of information technology services. The company partners with leading organizations worldwide to deliver innovative solutions that drive industry advancement and modernization. Their experts specialize in enhancing systems, optimizing processes, and integrating AI-driven capabilities to fortify operations.
Caution Regarding Forward-Looking Statements
This announcement may contain forward-looking statements, which involve substantial risks and uncertainties. The outcomes expressed through these statements are contingent on various factors, including future financial results and operational strategies. Readers are advised not to over-rely on such forward-looking statements, which are valid only as of their date. For comprehensive details regarding potential risks, refer to the "Risk Factors" section in DXC's Annual Report on Form 10-K for the fiscal year ending March 31, 2025.