This excerpt taken from the DELL 10-K filed Mar 18, 2010.
During Fiscal 2010, Dell issued the 2012 Notes, 2014 Notes, and the 2019 Notes (collectively, the Notes). The net proceeds from the Notes, after payment of expenses, were approximately $1.5 billion. The estimated fair value of all the notes included in long-term debt was approximately $3.2 billion at January 29, 2010, compared to a carrying value of $3.0 billion at that date.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During Fiscal 2010, Dell entered into several interest rate swap agreements to effectively convert $200 million of the Notes fixed rate to a floating rate. The floating rates are based on six-month LIBOR plus a fixed rate. The interest rate swaps qualified for hedge accounting treatment as fair value hedges.
The principal amount of the Senior Debentures was $300 million at January 29, 2010. The estimated fair value of the Senior Debentures was approximately $333 million at January 29, 2010, compared to a carrying value of $394 million at that date. The carrying value includes an unamortized amount related to the termination of interest rate swap agreements in the fourth quarter of Fiscal 2009, which were previously designated as hedges of the debt.
Dell India Pvt Ltd., Dells wholly-owned subsidiary, borrowed $24 million under a two-year term note agreement during Fiscal 2010 for working capital needs. The term note contains customary events of default, including failure to make required payments, failure to comply with certain agreements or covenants, misrepresentation, change of ownership, and certain events of bankruptcy and insolvency.
The indentures governing the Notes and the Senior Debentures contain customary events of default, including failure to make required payments, failure to comply with certain agreements or covenants, and certain events of bankruptcy and insolvency. The Indentures also contain covenants limiting Dells ability to create certain liens; enter into sale-and-lease back transactions; and consolidate or merge with, or convey, transfer or lease all or substantially all of its assets to another person.
As of January 29, 2010, there were no events of default with respect to the Notes, the Senior Debentures, or the India term note.
Aggregate future maturities of long-term debt at face value (excluding a $97 million unamortized carrying value adjustment related to the termination of interest rate swap agreements, a $5 million discount on debt issuance, and a $1 million hedge accounting adjustment) were as follows at January 29, 2010: