Hewlett-Packard Enterprise talks benchmark 10-part bond offering; pricing Wednesday

By Aleesia Forni

Virginia Beach, Sept. 30 – Hewlett-Packard Enterprise Co. is in Wednesday’s market with a benchmark 10-part offering of senior notes (Baa2/BBB/A-), a market source said.

The offering includes two-year notes talked in the 200 basis points area over Treasuries and a two-year floating-rate tranche talked at the Libor equivalent to the fixed-rate tranche.

A three-year note is talked in the area of Treasuries plus 215 bps, and a three-year floater is talked at its Libor equivalent.

Also, five-year notes are being talked in the Treasuries plus 240 bps area, and price talk for a five-year floater is set at its Libor equivalent.

The deals also includes seven-year notes talked in the 280 bps area over Treasuries, 10-year notes talked in the 300 bps area over Treasuries, 20-year bonds talked in the Treasuries plus 345 bps area and 30-year bonds talked in the area of Treasuries plus 360 bps.

Bookrunners are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch and Deutsche Bank Securities Inc.

The notes will be sold via Rule 144A and Regulation S.

Hewlett-Packard Enterprise plans to distribute the proceeds to Hewlett-Packard Co., which plans to use a portion of the cash distribution to redeem or repurchase some of its outstanding notes.

Hewlett Packard Enterprise is Hewlett-Packard’s wholly owned subsidiary focused on enterprise technology infrastructure, software, services and financing. The information technology company is based in Palo Alto, Calif.

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