C2 Credit Linked Security – Dell Inc
Fixed Rate Credit Linked Security
You can now invest in an Australian dollar, fixed coupon, credit-linked product over a series of senior unsecured bonds issued by Dell Inc. target 6.00% per annum.
Dell Technologies Inc provides computer products. The Company offers laptops, desktops, tablets, workstations, servers, monitors, printers, gateways, software, storage, and networking products. Dell Technologies serves customers worldwide.
Dell is among the world’s leading technology companies from hybrid cloud solutions to high-performance computing to ambitious social impact and sustainability initiatives. Dell is a technology leader in most of the end markets in which it participates and is benefiting from a strong PC refresh cycle related to Covid-19.
Dell is a listed global household name (NY Stock Exchange: DELL) with a market capitalisation of USD 32B.
Key Information
- Issuer: C2 Specialist Investment Pty Ltd
- Target Rate: 6.00% per annum paid every 3 months. The Coupon Rate will be determined and set in the range 5.75% – 6.25%p.a on the Commencement Date.
- 4-year note (maturity 20 December 2026)
- Issue Price: $100
- Initial Offer Period: $100.00 per Unit in respect of:
• Units purchased during the Initial Offer Period; and
• any calculations referring to the Final Value or the Coupons. - ABE Code: [C2DF060026]
- Minimum Investment: A$10,000
- Currency: The note is denominated in AUD. All Coupons and any Final Value is delivered in Australian dollars.
Dell Reference Asset
- Dell Inc USD 5-year generic Credit Default Swap (CDS) contract
- Bloomberg Name: DELL CDS USD SR 5Y
- Standard Reference Obligation: Dell Inc USD 7.10% bond maturing 15 April 2028
- Bloomberg Name: DELL 7.1 04/15/28
- Bloomberg ISIN: US247025AE93
- Bond Rating: BBB- (S&P) / Baa3 (Moody’s) / BBB- (Fitch)
- Debt Type: Senior Unsecured
Risks
The risks listed below as some of the risks of investing in the product. For a comprehensive description of the risks, please refer to the Key Risks section of the Term Sheet PDS.
Credit Risk: Defaults on the underlying security may result in a loss of principal invested and/or interest due under those bonds and the underlying CDS contracts
This risk is mitigated by:
- the size and global reach of the underlying security;
- the use of Tier One International banking partner
Bond and CDS Market Risk: A material decline in the value of Dell brand in relevant market segments will erode the value of the Notes and the underlying CDS contracts
This risk is mitigated by:
- the factors referred to under ‘Credit Risk’ above;
Liquidity risk. You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy-Back requests are determined at the Issuer’s discretion
This risk is mitigated by:
- the Australian Bond Exchange will facilitate the secondary market to enhance liquidity