Dell Technologies is utilizing its investment-grade credit rating to refinance debt. The company is issuing bonds across four tranches with maturities ranging from three to ten years. The longest-dated tranche is expected to have a premium of up to 1.4 percentage points over Treasury securities, reflecting its mid-BBB credit rating.
The proceeds from the $4 billion offering will be used to retire notes maturing on October 1, 2026, which currently carry a 4.900% interest rate. Any remaining funds will be allocated for general corporate purposes. Barclays, Bank of America, and Citigroup are acting as the underwriters for this transaction.
The financial move comes as Dell's AI server business experiences significant growth. Earlier this month, the company increased its full-year sales forecast by $25 billion due to demand for AI-optimized servers, many of which are based on Nvidia's GPU architecture.
As of July 31, 2026, Dell carries $26 billion in long-term debt. The company's shares have risen approximately 340% year-to-date, transforming its market position as a primary provider of AI infrastructure.