By Cristal Cody
Tupelo, Miss., Sept. 10 – Hewlett Packard Enterprise Co. priced $1.3 billion of senior notes (Baa2/BBB/BBB+) on Monday in two tranches on the tight side of guidance, according to a market source.
The $800 million tranche of three-year floating-rate notes priced at Libor plus 72 basis points.
A $500 million tranche of 3.5% three-year fixed-rate notes were sold at a spread of Treasuries plus 77 bps.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
The Palo Alto, Calif., technology company intends to use the proceeds to repay $1.05 billion of 2.85% notes due 2018 and $250 million of floating-rate notes due 2018 and for general corporate purposes.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $1.3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
| Trade date: | Sept. 10
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $800 million
|
| Maturity: | Oct. 5, 2021
|
| Coupon: | Libor plus 72 bps
|
| Price guidance: | Libor plus 75 bps area, plus or minus 3 bps; initial price talk at Libor plus 95 bps area
|
|
|
| Three-year notes
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| Amount: | $500 million
|
| Maturity: | Oct. 5, 2021
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 77 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 3 bps; initial price talk at Treasuries plus 100 bps area
|
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