HP to pay up to $1 billion in tender offer for seven series of notes

By Wendy Van Sickle

Columbus, Ohio, June 26 – HP Inc. began a cash tender offer to buy notes from seven series for up to a combined total purchase price, excluding accrued interest, of $1 billion, according to a news release Monday.

The following notes, listed in order of acceptance priority, are covered by the offer:

• The $850 million outstanding 3.4% notes due June 17, 2030 (Cusip: 40434LAC9) for a price that will be based on the 3.375% U.S. Treasury note due May 15, 2033 plus 170 basis points;

• The $1 billion outstanding 4.2% notes due April 15, 2032 (Cusip: 40434LAL9) for a price that will be based on the 3.375% U.S. Treasury note due May 15, 2033 plus 190 bps;

• The $1 billion outstanding 1.45% notes due June 17, 2026 (Cusips: 40434LAD7, 40434LAF2) for a price that will be based on the 4.125% U.S. Treasury note due June 15, 2026 plus 62 bps;

• The $1 billion outstanding 3% notes due June 17, 2027 (Cusip: 40434LAB1) for a price that will be based on the 3.625% U.S. Treasury note due May 31, 2028 plus 100 bps;

• The $1 billion outstanding 4% notes due April 15, 2029 (Cusip: 40434LAK1) for a price that will be based on the 3.625% U.S. Treasury note due May 31, 2028 plus 120 bps;

• The $1.15 billion outstanding 2.2% notes due June 17, 2025 (Cusip: 40434LAA3) for a price that will be based on the 2.875% U.S. Treasury note due June 15, 2025 plus 60 bps; and

• The $900 million outstanding 4% notes due Jan. 15, 2028 (Cusip: 40434LAM71) for a price that will be based on the 3.625% U.S. Treasury note due May 31, 2028 plus 130 bps.

Pricing will be determined at 10 a.m. ET on July 11.

For each series, the issuer will also pay an early tender premium of $30 per $1,000 of notes tendered and accepted to holders who tender their notes by the early deadline of 5 p.m. ET on July 10, which is also the withdrawal deadline.

The offer will expire at 5 p.m. ET on July 25.

Settlement is expected to occur on July 27.

BofA Securities, Inc. (888 292-0070 or 980 387-3907) and J.P. Morgan Securities LLC (866 834-4666, 212 834-4818 or +44 20 7134 2468) are the dealer managers.

D.F. King & Co., Inc. (800 628-8528 or 212 269-5550) is the tender agent and the information agent.

HP is a Palo Alto, Calif., technology company.

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