Published on 4/7/2020 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard gives details on $2.25 billion of notes in two parts
By Devika Patel
Knoxville, Tenn., April 7 – Hewlett Packard Enterprise Co. offered further details about a $2.25 billion sale of senior notes (Baa2/BBB/BBB+) that priced in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $1.25 billion tranche of 4.45% notes due Oct. 2, 2023 priced at a spread of Treasuries plus 412.5 basis points, compared to initial guidance in the Treasuries plus 462.5 bps area. These notes priced at 99.956 to yield 4.464%.
A $1 billion tranche of 4.65% notes due Oct. 1, 2024 priced at a spread of Treasuries plus 425 bps. These notes priced at 99.817 to yield 4.696%.
The four-year notes were talked to price at the 475 bps spread area.
A tranche of seven-year notes that was initially talked to price at the Treasuries plus 475 bps area was dropped from the final offering.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., NatWest Markets Securities Inc. and Santander Investment Securities Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
The technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $2.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., NatWest Markets Securities Inc. and Santander Investment Securities Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC, Deutsche Bank Securities Inc., MUFG, TD Securities (USA) LLC, Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, SG Americas Securities, LLC, Loop Capital Markets LLC, U.S. Bancorp Investments, Inc., ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Standard Chartered Bank and Siebert Williams Shank & Co., LLC
|
| Trade date: | April 6
|
| Settlement date: | April 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 3.5-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 2, 2023
|
| Coupon: | 4.45%
|
| Price: | 99.956
|
| Yield: | 4.464%
|
| Spread: | Treasuries plus 412.5 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 2, 2023, then a par call
|
| Price guidance: | Treasuries plus 462.5 bps area
|
|
|
| 4.5-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 4.65%
|
| Price: | 99.817
|
| Yield: | 4.696%
|
| Spread: | Treasuries plus 425 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2024, then a par call
|
| Price guidance: | Treasuries plus 475 bps area
|
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