Published on 7/14/2020 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard prices $1.75 billion two-tranche offering of senior notes
By Cristal Cody
Tupelo, Miss., July 14 – Hewlett Packard Enterprise Co. priced a $1.75 billion two-part offering of senior notes (Baa2/BBB/BBB+) on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $1 billion of 1.45% notes due April 1, 2024 at 99.883 to yield 1.482%, or a spread of Treasuries plus 130 basis points.
Initial guidance was in the Treasuries plus 140 bps area.
A $750 million tranche of 1.75% notes due April 1, 2026 priced at 99.82 to yield 1.783%. The notes priced at a spread of Treasuries plus 150 bps versus initial talk in the 160 bps spread area.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem the company's $3 billion of 3.6% senior notes due 2020.
The technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $1.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BofA Securities, Inc., BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, NatWest Markets Securities Inc., Santander Investment Securities Inc., Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, Loop Capital Markets LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Standard Chartered Bank and MFR Securities, Inc.
|
| Trade date: | July 14
|
| Settlement date: | July 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Four-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2024
|
| Coupon: | 1.45%
|
| Price: | 99.883
|
| Yield: | 1.482%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before March 1, 2024 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 140 bps area
|
|
|
| Six-year notes
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| Amount: | $750 million
|
| Maturity: | April 1, 2026
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| Coupon: | 1.75%
|
| Price: | 99.82
|
| Yield: | 1.783%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before March 1, 2026 at Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 160 bps area
|
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