Hewlett-Packard Enterprise brings $14.6 billion deal; HSBC firms; Ford Motor Credit soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 30 – Hewlett-Packard Enterprise Co. priced a $14.6 billion megadeal on Wednesday, giving some life to what has been an otherwise sleepy investment-grade primary market this week.

One source noted the deal was slated to price at the front end of the week but was pushed back due to the volatile market conditions.

The nine-part deal, which was issued in connection with the company’s spinoff from Hewlett-Packard Co., garnered a solid $30 billion order book, with some tranches pricing between 10 basis points and 15 bps tighter than initial talk.

Thursday’s primary also hosted new deals from International Bank for Reconstruction and Development (World Bank) and United Parcel Service, Inc., bringing the week’s total supply to more than $23.3 billion.

Bank and financial paper was mixed in secondary trading over the session after mostly widening on Tuesday.

HSBC Holdings plc’s 4.25% subordinated notes due 2025 traded 1 bp tighter.

Bank of America Corp.’s 3.875% senior notes due 2025 were unchanged.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 eased 5 bps in the secondary market.

The Markit CDX North American Investment Grade 25 index ended mostly unchanged to modestly tighter at a spread of 93 bps. The index has ranged from a low spread of 60.7 bps to a high of 93.3 bps over the past 12 months, according to a Barclays Bank plc report on Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.