By Andrea Heisinger
New York, Dec. 7 - Hewlett-Packard Co. gave the terms of its $3 billion sale of global notes (A2/BBB+/A), which were priced in three tranches late on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The $650 million of 2.625% three-year notes priced at 99.946 to yield 2.644% with a spread of Treasuries plus 225 basis points. They have a make-whole call at Treasuries plus 35 bps.
An $850 million tranche of 3.3% five-year paper sold at 99.79 to yield 3.346% with a spread of 240 bps over Treasuries. They have a make-whole call at Treasuries plus 37.5 bps.
The final part was $1.5 billion of 4.65% 10-year notes priced at 99.7 to yield 4.687% with a spread of Treasuries plus 260 bps. There is a make-whole call at 40 bps over Treasuries.
Bookrunners were Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Co-managers were Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc. and Wells Fargo Securities LLC.
Proceeds will be used to repay commercial paper and for general corporate purposes.
HP last priced bonds in a $4.5 billion deal in five tranches on Sept. 13. The 3% five-year paper from that deal priced at 215 bps over Treasuries while a 4.375% tranche of 10-year notes sold at 240 bps over Treasuries.
The computer and technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett-Packard Co.
|
| Issue: | Global notes
|
| Amount: | $3 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc., Wells Fargo Securities LLC
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: BBB+
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $650 million
|
| Maturity: | Dec. 9, 2014
|
| Coupon: | 2.625%
|
| Price: | 99.946
|
| Yield: | 2.644%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| Five-year notes
|
| Amount: | $850 million
|
| Maturity: | Dec. 9, 2016
|
| Coupon: | 3.3%
|
| Price: | 99.79
|
| Yield: | 3.346%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 37.5 bps
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 9, 2021
|
| Coupon: | 4.65%
|
| Price: | 99.7
|
| Yield: | 4.687%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
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