By Andrea Heisinger
New York, Nov. 29 - Hewlett-Packard Co. sold $2 billion of senior notes (A2/A/A+) in two tranches on Monday, a source close to the trade said.
The $650 million of 2.2% five-year notes priced at 99.911 to yield 2.219% with a spread of Treasuries plus 73 basis points. The notes priced at the tight end of guidance in the 75 bps area, the source said.
The five-year notes have a make-whole call at 12 bps over Treasuries.
The $1.35 billion of 3.25% 10-year notes sold at 99.827 to yield 3.771%, or 95 bps over Treasuries. The spread came in line with initial talk in the 95 bps area.
The 10-year notes have a make-whole call of 15 bps over Treasuries.
Bank of America Merrill Lynch, BNP Paribas Securities Corp., UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds are going to repay commercial paper, among other general corporate purposes.
The company last sold bonds in a $3 billion issue in three tranches on Sept. 8. The 2.125% five-year notes from that deal priced at 70 bps over Treasuries.
The information technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett-Packard Co.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., UBS Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 2
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Dec. 1, 2015
|
| Coupon: | 2.2%
|
| Price: | 99.911
|
| Yield: | 2.219%
|
| Spread: | Treasuries plus 73 bps
|
| Call: | Make-whole at Treasuries plus 12 bps
|
| Price talk: | 75 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | Dec. 1, 2020
|
| Coupon: | 3.25%
|
| Price: | 99.827
|
| Yield: | 3.771%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps area
|
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