Update on Release of Guarantee provided by the Company on USD denominated Senior Notes issued by HCL America Inc., a wholly owned step-down subsidiary'.
HCLTECH · price
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HCL Technologies' step-down subsidiary HCL America Inc. has fully repaid the remaining USD 252.207 million outstanding on its 1.375% senior unsecured notes, originally a USD 500 million issue from March 2021. The parent company had given an unconditional and irrevocable guarantee on these notes. Since USD 247.793 million had already been bought back in February 2023, this final repayment clears the entire balance. With no notes left outstanding, HCL Technologies' guarantee obligation will now be released by the trustee.
This is a positive development for shareholders — it removes a contingent liability from HCL Technologies' balance sheet, reduces its guaranteed debt exposure, and signals strong cash generation at the subsidiary level with no refinancing risk on these notes.