Analyzing Debt Terms, Yields, Prices, and Credit Ratings
Reproduced below is the debt footnote from the 2013 10-K report of Dell Inc.
|
Long-Term Debt (in millions)
|
February 1,
2013
|
February 3,
2012
|
|
Senior Notes
|
|
$400 million issued on June 10, 2009, at 3.375% due June 2012 ("2012 Notes")
|
$ -
|
$ 400
|
|
$600 million issued on April 17, 2008, at 4.70% due April 2013 ("2013A Notes")
|
601
|
605
|
|
$500 million issued on September 7, 2010, at 1.40% due September 2013
|
500
|
499
|
|
$500 million issued on April 1, 2009, at 5.625% due April 2014(b)
|
500
|
500
|
|
$300 million issued on March 28, 2011, with a floating rate due April 2014 ("2014B Notes")
|
300
|
300
|
|
$400 million issued on March 28, 2011, at 2.10% due April 2014
|
400
|
400
|
|
$700 million issued on September 7, 2010, at 2.30% due September 2015(b)
|
702
|
701
|
|
$400 million issued on March 28, 2011, at 3.10% due April 2016(b)
|
402
|
401
|
|
$500 million issued on April 17, 2008, at 5.65% due April 2018(b)
|
502
|
501
|
|
$600 million issued on June 10, 2009, at 5.875% due June 2019(b)
|
604
|
602
|
|
$400 million issued on March 28, 2011, at 4.625% due April 2021
|
398
|
398
|
|
$400 million issued on April 17, 2008, at 6.50% due April 2038
|
400
|
400
|
|
$300 million issued on September 7, 2010, at 5.40% due September 2040
|
300
|
300
|
|
Senior Debentures
|
|
$300 million issued on April 3, 1998, at 7.10% due April 2028 ("Senior Debentures")(a)
|
379
|
384
|
|
Other
|
|
Long-term structured financing debt
|
872
|
920
|
|
Less: current portion of long-term debt
|
(1,618)
|
(924)
|
|
Total long-term debt
|
5,242*
|
6,387
|
|
Short-Term Debt
|
|
Commercial paper
|
1,807
|
1,500
|
|
Short-term structured financing debt
|
416
|
440
|
|
Current portion of long-term debt
|
1,618
|
924
|
|
Other
|
2
|
3
|
|
Total short-term debt
|
3,843
|
2,867
|
|
Total debt
|
$ 9,085
|
$ 9,254
|
| |
|
|
|
*Reflects carrying value (net book value) of debt.
Aggregate future maturities of long-term debt at face value were as follows at February 1, 2013:
|
|
Maturities by Fiscal Year
|
|
(in millions)
|
2014
|
2015
|
2016
|
2017
|
2018
|
Thereafter
|
Total
|
|
Aggregate future maturities
|
|
|
|
|
|
|
|
|
of long-term debt outstanding
|
$ 1,617
|
$ 1,465
|
$ 790
|
$ 400
|
$ --
|
$ 2,500
|
$ 6,722**
|
**Reflects face value of debt.
Reproduced below is a summary of the market values as of November 2013 of the Dell bonds maturing from 2021 to 2040 (from Morningstar, quicktake.morningstar.com).
|
Name
|
Maturity
Date
|
Amount $
|
Price
|
Coupon %
|
Yield to
Maturity %
|
|
Dell 5.4%
|
9/10/2040
|
300
|
69.50
|
5.4
|
8.24
|
|
Dell 6.5%
|
4/15/2038
|
400
|
77.30
|
6.5
|
8.77
|
|
Dell 4.625%
|
4/1/2021
|
400
|
91.50
|
4.625
|
6.07
|
(a) What is the amount of long-term debt reported on Dell's February 1, 2013 balance sheet?
$_________ million
What are the scheduled maturities for this indebtedness?
|
2014
|
$______
|
million
|
|
2015
|
$______
|
million
|
|
2016
|
$______
|
million
|
|
2017
|
$ ______
|
million
|
|
2018
|
$______
|
million
|
|
thereafter
|
$______
|
million
|
Dell's $300 million 5.4% notes traded at 69.5 or 69.5% of par, as of November 2013. What is the market value of these notes on that date? (Round your answer to one decimal place.)
$_______ million