By Cristal Cody
Tupelo, Miss., June 9 – HP Inc. priced $3 billion of fixed-rate senior notes (Baa2/BBB/BBB+) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission on Tuesday.
A $1.15 billion offering of 2.2% five-year notes priced at 99.769 to yield 2.249%, or a spread of Treasuries plus 185 basis points.
Initial deal talk was in the 212.5 bps spread area.
HP sold $1 billion of 3% seven-year notes at a 240 bps over Treasuries spread, compared to initial guidance in the 255 bps spread area. The notes priced at 99.718 to yield 3.045%.
In the final tranche, $850 million of 3.4% 10-year notes priced at 99.79 to yield 3.425%, or a spread of 260 bps over Treasuries.
The notes were talked to print at the 275 bps over Treasuries area.
BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
The proceeds will be used to fund a tender offer for the company’s 3.75% global notes due Dec. 1, 2020, of which about $649 million principal amount is outstanding; its 4.3% global notes due June 1, 2021, of which about $667 million principal amount is outstanding; its 4.375% global notes due Sept. 15, 2021, of which about $538 million principal amount is outstanding; and its 4.65% global notes due Dec. 9, 2021, of which about $695 million principal amount is outstanding.
Remaining proceeds will be used to fund general corporate purposes.
The information technology company is based in Palo Alto, Calif.
| Issuer: | HP Inc.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, Loop Capital Markets LLC, Santander Investment Securities Inc., Standard Chartered Bank, U.S. Bancorp Investments, Inc., Academy Securities, Inc., Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Pricing date: | June 9
|
| Settlement date: | June 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | June 17, 2025
|
| Coupon: | 2.2%
|
| Price: | 99.769
|
| Yield: | 2.249%
|
| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call before May 17, 2025 at Treasuries plus 30 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 212.5 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 17, 2027
|
| Coupon: | 3.4%
|
| Price: | 99.718
|
| Yield: | 3.045%
|
| Spread: | Treasuries plus 240 bps
|
| Call features: | Make-whole call before April 17, 2027 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 255 bps area
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | June 17, 2030
|
| Coupon: | 3.4%
|
| Price: | 99.79
|
| Yield: | 3.425%
|
| Spread: | Treasuries plus 260 bps
|
| Call features: | Make-whole call before March 17, 2030 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 255 bps area
|
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