Catenaa, Wednesday, September 09, 2026- Dell is set to raise $5 billion from an investment-grade bond sale that saw booming investor demand amidst a surge in revenue from AI servers.
Investors placed roughly $23 billion of orders for the offering at its peak, or almost five times the size of the deal, Bloomberg News reported.
That compares with an average of about four times across investment-grade deals this year, according to Bloomberg-compiled data.
The company was initially expected to raise about $4 billion, separate people said earlier.
The maker of servers and other data-center equipment is offering bonds in four tranches, with maturities ranging from three to 10 years.
The longest-tenored note is set to yield 1.1 percentage points more than Treasuries, as much as 0.3 percentage point tighter than initial discussions, a separate person told Bloomberg.
Proceeds will be used to repay notes maturing this year and fund general corporate purposes that could include the repayment of other debt, the person said. Dell has $2.3 billion of bonds maturing in October, according to data compiled by Bloomberg.
Wednesday’s offering “should reinforce an already solid credit profile as AI drives record operating momentum,” Bloomberg Intelligence analyst Robert Schiffman said in a note. He added that “Dell has room to refinance maturities and increase shareholder returns while preserving its mid-BBB credit profile.”
The company’s stock has more than quadrupled this year as Dell benefits from surging demand for artificial-intelligence infrastructure. The firm earlier this month raised its fiscal-year sales forecast by $25 billion, surprising analysts.
Dell is securing contracts for machines packed with Nvidia’s AI chips, as well as for traditional servers. That equipment contains the type of central processing units, or CPUs, that have regained momentum because they are useful for tasks like managing AI agents.
Barclays, Bank of America, Citigroup, Goldman Sachs, HSBC, JPMorgan Chase, the Toronto-Dominion Bank and Wells Fargo are managing Dell’s bond offering.
The deal is among 16 in the US investment-grade market Wednesday, part of the typical post-Labor Day rush of bond sales. Others offering notes today to refinance debt include Smith & Nephew, Blue Owl Credit Income and Rogers Communications.
