Published on 9/11/2018 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard details $1.3 billion two-part sale of notes due 2021
By Cristal Cody
Tupelo, Miss., Sept. 11 – Hewlett Packard Enterprise Co. provided additional details of its $1.3 billion two-part sale of senior notes (Baa2/BBB/BBB+) on Monday in FWP filings with the Securities and Exchange Commission.
The $800 million tranche of three-year floating-rate notes priced at par to yield Libor plus 72 basis points.
A $500 million tranche of 3.5% three-year fixed-rate notes priced at 99.861 to yield 3.548%, or a spread of Treasuries plus 77 bps.
Both tranches came on the tight side of guidance, according to a market source.
Citigroup Global Markets Inc., BofA Merrill Lynch 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.
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| Amount: | $1.3 billion
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| Description: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch and Wells Fargo Securities LLC
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| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC, SG Americas Securities, LLC, ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Santander Investment Securities Inc., Standard Chartered Bank, U.S. Bancorp Investments, Inc., C.L. King & Associates, Inc. and Siebert Cisneros Shank & Co., LLC
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
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| Fitch: BBB+
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| Distribution: | SEC registered
|
|
|
| Three-year floaters
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| Amount: | $800 million
|
| Maturity: | Oct. 5, 2021
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| Coupon: | Libor plus 72 bps
|
| Price: | Par
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| Yield: | 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
|
| Call feature: | On or after Sept. 20, 2019 at par
|
|
|
| Three-year notes
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| Amount: | $500 million
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| Maturity: | Oct. 5, 2021
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| Coupon: | 3.5%
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| Price: | 99.861
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| Yield: | 3.548%
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| Spread: | Treasuries plus 77 bps
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| Price guidance: | Treasuries plus 80 bps area, plus or minus 3 bps; initial price talk at Treasuries plus 100 bps area
|
| Call features: | Make-whole call on or after Sept. 5, 2021 at Treasuries plus 15 bps; thereafter at par
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