Subsequent Events

6 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

HHS Sale

On October 1, 2020, DXC completed the sale of its HHS Business to Veritas Capital. The sale was accomplished by the cash purchase of all equity interests and assets attributable to the HHS Business together with future services to be provided by the Company for a total enterprise value of $5.0 billion, subject to net working capital adjustments and assumed liabilities. The sale was not subject to any financing condition or shareholder approval. Following the transaction close, DXC retains its remaining healthcare practice, relating to the pending HPS sale.

Debt Repayments

DXC used the proceeds from the sale of the HHS Business to further strengthen its balance sheet and repaid approximately $3.5 billion of outstanding debt as of September 30, 2020. Except for £600 million (approximately $775 million) related to commercial paper, almost all of the remainder repayment related to bank debt including both remaining amounts drawn on the revolving credit facility and other outstanding term loans.

Termination of Milano Receivables Facility

On October 1, 2020, and in connection with the consummation of the sale of the HHS Business, the Milano Facility was terminated at the request of the buyer of the HHS Business. In connection with the termination, DXC paid the Milano Purchasers approximately $272 million on behalf of Milano Receivables SPV to repurchase HHS Business related commercial accounts receivable previously sold under the program as of the termination date. The Milano Receivables SPV, which owned all the accounts receivables of the HHS Business, including the repurchased accounts receivables, were part of the HHS Business that were transferred to Veritas Capital as part of the sale of the HHS Business.