By Aleesia Forni
Virginia Beach, Sept. 30 – Hewlett-Packard Enterprise Co. priced a $14.6 billion nine-part offering of senior notes (Baa2/BBB/A-) on Wednesday, a market source said.
Priced were $2.25 billion of 2.45% two-year notes at 99.944 to yield 2.479%, or Treasuries plus 185 basis points.
Guidance was set in the Treasuries plus 195 bps area, tightened from the Treasuries plus 200 bps area.
Also, $350 million of floating-rate notes due Oct. 5, 2017 sold at par to yield Libor plus 174 bps.
A $2.65 billion tranche of 2.85% three-year notes sold at 99.872 to yield 2.895% with a spread of Treasuries plus 200 bps.
The notes sold at the tight end of guidance set in the Treasuries plus 210 bps area following talk in the Treasuries plus 215 bps area.
A $250 million floating-rate tranche due Oct. 5, 2018 sold at par to yield Libor plus 193 bps.
The company also priced $3 billion of 3.6% five-year notes at 99.972 to yield 3.606%, or Treasuries plus 225 bps.
Pricing was at the tight end of the Treasuries plus 235 bps area guidance. Initially, talk was in the Treasuries plus 240 bps area.
Also priced was $1.35 billion of 4.4% seven-year notes at 99.802 to yield 4.433%, or Treasuries plus 270 bps.
Guidance was in the Treasuries plus 280 bps area, unchanged from initial talk.
There was $2.5 billion of 4.9% 10-year notes sold at Treasuries plus 290 bps. Pricing was at 99.725 to yield 4.935%.
The notes sold at the tight end of the Treasuries plus 300 bps area guidance, which was unchanged from talk.
Also, $750 million of 6.2% 20-year notes sold at 99.942 to yield 6.205% with a spread of Treasuries plus 335 bps.
Guidance was in the Treasuries plus 345 bps area. Talk was also in the 345 bps area over Treasuries.
Finally, $1.5 billion of 6.35% 30-year notes sold at 99.932 to yield 6.355%, or Treasuries plus 350 bps.
The notes were guided and initially talked in the Treasuries plus 360 bps area.
Bookrunners are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch and Deutsche Bank Securities Inc.
The notes were 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.
| Issuer: | Hewlett-Packard Enterprise Co.
|
| Issue: | Senior notes
|
| Amount: | $14.6 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Trade date: | Sept. 30
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: A-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Two-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Oct. 5, 2017
|
| Coupon: | 2.45%
|
| Price: | 99.944
|
| Yield: | 2.479%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 195 bps area, tightened from Treasuries plus 200 bps area
|
|
|
| Two-year floaters
|
| Amount: | $350 million
|
| Maturity: | Oct. 5, 2017
|
| Coupon: | Libor plus 174 bps
|
| Price: | Par
|
| Yield: | Libor plus 174 bps
|
| Price guidance: | Libor equivalent to fixed-rate notes
|
|
|
| Three-year notes
|
| Amount: | $2.65 billion
|
| Maturity: | Oct. 5, 2018
|
| Coupon: | 2.85%
|
| Price: | 99.872
|
| Yield: | 2.895%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 210 bps area, tightened from Treasuries plus 215 bps area
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | Oct. 5, 2018
|
| Coupon: | Libor plus 193 bps
|
| Price: | Par
|
| Yield: | Libor plus 193 bps
|
| Price guidance: | Libor equivalent to fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $3 billion
|
| Maturity: | Oct. 5, 2020
|
| Coupon: | 3.6%
|
| Price: | 99.972
|
| Yield: | 3.606%
|
| Spread: | Treasuries plus 225 bps
|
| Price guidance: | Treasuries plus 235 bps area, tightened from Treasuries plus 240 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | Oct. 15, 2022
|
| Coupon: | 4.4%
|
| Price: | 99.802
|
| Yield: | 4.433%
|
| Spread: | Treasuries plus 270 bps
|
| Price guidance: | Treasuries plus 280 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 15, 2025
|
| Coupon: | 4.9%
|
| Price: | 99.725
|
| Yield: | 4.935%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 15, 2035
|
| Coupon: | 6.2%
|
| Price: | 99.942
|
| Yield: | 6.205%
|
| Spread: | Treasuries plus 335 bps
|
| Price guidance: | Treasuries plus 345 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 15, 2045
|
| Coupon: | 6.35%
|
| Price: | 99.932
|
| Yield: | 6.355%
|
| Spread: | Treasuries plus 350 bps
|
| Price guidance: | Treasuries plus 360 bps area
|
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