Published on 6/5/2023 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard Enterprise prices $800 million of notes in new, add-on tranches
By Wendy Van Sickle
Columbus, Ohio, June 5 – Hewlett Packard Enterprise Co. priced $800 million of notes (Baa2/BBB/BBB+) in two tranches on Monday, including an add-on to its 5.9% notes due Oct. 1, 2024, according to FWP filings with the Securities and Exchange Commission.
The company priced a $250 million add-on to its 5.9% notes due Oct. 1, 2024 at 100.452 to yield 5.524%, or a spread of 105 basis points over Treasuries. The original series of notes due 2024 was issued on March 21, 2023. The additional notes will be fungible with the $1.3 billion of existing notes.
The company also priced $550 million of 5.25% notes due July 1, 2028 at 99.887 to yield 5.275%, or a spread of 145 bps over Treasuries.
Citigroup Global Markets Inc., BofA Securities, Inc. and Santander US Capital Markets LLC are the joint bookrunners.
Proceeds will be used, with cash on hand, to refinance upcoming debt maturities and for general corporate purposes.
The technology company is based in Spring, Tex.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $800 million
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| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc. and Santander US Capital Markets LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, NatWest Markets Securities Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, Loop Capital Markets LLC, U.S. Bancorp Investments, Inc., CIBC World Markets Corp., Oversea-Chinese Banking Corp. Ltd., Academy Securities, Inc., ANZ Securities, Inc., Credit Agricole Securities (USA) Inc. and Standard Chartered Bank
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP and in-house
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Change-of-control put: | At 101
|
| Trade date: | June 5
|
| Settlement date: | June 14
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB+
|
|
|
| 2024 add-on
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| Amount: | $250 million
|
| Maturity: | Oct. 1, 2024
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| Coupon: | 5.9%
|
| Price: | 100.452
|
| Yield: | 5.524%
|
| Spread: | Treasuries plus 105 bps
|
| Call option: | Make-whole call at Treasuries plus 15 bps at any time
|
| Total issue: | $1.55 billion, including $1.3 billion issued on March 21
|
| Cusip: | 42824CBL2
|
|
|
| 2028 notes
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| Amount: | $550 million
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| Maturity: | July 1, 2028
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| Coupon: | 5.25%
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| Price: | 99.887
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| Yield: | 5.275%
|
| Spread: | Treasuries plus 145 bps
|
| Call options: | Make-whole call at Treasuries plus 25 bps prior to June 1, 2028; par call after that
|
| Cusip: | 42824CBP3
|
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