DXC Technology announced that it will redeem all €650 million of its 1.750 % Senior Notes due January 2026 and will partially redeem $300 million of its 1.800 % Senior Notes due September 2026. The redemption of the Euro notes will occur on December 24, 2025, at 100 % of principal plus accrued and unpaid interest, while the USD notes will be redeemed on December 19, 2025, at 100 % of principal plus a make‑whole premium and accrued interest.
The Euro notes will be delisted from the New York Stock Exchange following their redemption, eliminating the need for ongoing reporting and compliance costs associated with the listing. The USD notes, being only partially redeemed, will remain outstanding until their scheduled maturity in September 2026.
The redemption is part of DXC’s broader debt‑refinancing strategy. The company recently issued €650 million of 4.250 % Senior Notes due 2030, a longer‑dated instrument that will replace the 2026 notes. Although the new 2030 notes carry a higher coupon, the extended maturity reduces refinancing risk and aligns the debt profile with the company’s long‑term capital needs.
Financially, DXC’s Q4 FY25 results showed revenue down 6.4 % year‑over‑year and an adjusted EBIT margin of 7.3 %. The company generated $1.31 billion in free cash flow over the past twelve months, supporting the debt‑repayment plan. Net debt stood at approximately $1.98 billion, with an interest coverage ratio of 16.5 times, indicating a comfortable cushion to absorb the higher coupon on the new 2030 notes.
CEO Raul Fernandez emphasized confidence in the company’s direction, noting that the debt‑management moves “help us build a business with profitable and sustainable revenue growth.” The redemption is expected to lower short‑term interest expense, extend the debt maturity profile, and simplify the capital structure for investors, positioning DXC for continued investment in its digital and AI initiatives.
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