Published on 9/4/2019 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard prices $1.5 billion of fixed-, floating-rate notes due 2021, 2023
By Wendy Van Sickle
Columbus, Ohio, Sept. 4 – Hewlett Packard Enterprise Co. priced $1.5 billion of senior notes (Baa2/BBB/BBB+) on Wednesday in two tranches, according to FWP filings with the Securities and Exchange Commission.
The $500 million tranche of 18-month floating-rate notes priced at Libor plus 68 basis points at par.
A $1 billion tranche of 2.25% fixed-rate notes due April 1, 2023 was sold at a spread of Treasuries plus 90 bps. The notes priced at 99.979 to yield 2.256%.
HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.
The Palo Alto, Calif., technology company intends to repay its $1.1 billion 2.1% notes due 2019, to fund the acquisition of Cray Inc. along with the proceeds from an expected offering of asset-backed notes and for general corporate purposes.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Co-managers: | BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., MUFG, NatWest Markets Securities Inc., Santander Investment Securities Inc., Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, Loop Capital Markets LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Standard Chartered Bank and Academy Securities, Inc.
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 18-month floaters
|
| Amount: | $500 million
|
| Maturity: | March 12, 2021
|
| Coupon: | Libor plus 68 bps
|
| Price: | Par
|
| Yield: | Libor plus 68 bps
|
|
|
| 2023 notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2023
|
| Coupon: | 2.25%
|
| Price: | 99.979
|
| Yield: | 2.256%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Prior to March 1, 2023 at make-whole call at Treasuries plus 15 bps; thereafter at par
|
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