By Andrea Heisinger
New York, Sept. 13 - Hewlett-Packard Co. sold $4.5 billion of global notes (A2/A/A+) in five tranches late on Tuesday, an informed source said.
The sale was announced late in the day after sizing up market conditions.
A $350 million tranche of three-year floating-rate notes sold at par to yield Libor plus 155 basis points.
There was a $750 million tranche of 2.35% notes due 2015 priced at 99.977 to yield 2.357% with a spread of 200 bps over Treasuries. The notes have a make-whole call at 35 bps over Treasuries.
A third part was $1.2 billion of 3% five-year notes sold at 99.784 to yield 3.047% with a spread of Treasuries plus 215 bps. The tranche also has a make-whole call at Treasuries plus 35 bps.
The $1 billion of 4.375% 10-year notes priced at 99.816 to yield 4.398% with a spread of 240 bps over Treasuries. There is a make-whole call at 35 bps over Treasuries.
Finally, there was $1.2 billion of 6% 30-year bonds sold at 99.863 to yield 6.01% with a spread of Treasuries plus 270 bps. They have a make-whole call at 40 bps over Treasuries.
Bank of America Merrill Lynch, Barclays Capital Inc. and Citigroup Global Markets Inc. were the active bookrunners. Passive bookrunners were Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and UBS Securities LLC.
Proceeds will be used to fund the pending $11 billion acquisition of British software company Autonomy.
The 10-year and 30-year tranches each have a mandatory redemption at 101% if the acquisition is not done by Oct. 1, 2012.
HP last sold notes in a $5 billion deal in five parts on May 25.
The information technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett-Packard Co.
|
| Issue: | Global notes
|
| Amount: | $4.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc. (active), Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, UBS Securities LLC (passive)
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Three-year floaters
|
| Amount: | $350 million
|
| Maturity: | Sept. 19, 2014
|
| Coupon: | Libor plus 155 bps
|
| Price: | Par
|
| Yield: | Libor plus 155 bps
|
| Call: | Non-callable
|
|
|
| Notes due 2015
|
| Amount: | $750 million
|
| Maturity: | March 15, 2015
|
| Coupon: | 2.35%
|
| Price: | 99.977
|
| Yield: | 2.357%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| Five-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Sept. 15, 2016
|
| Coupon: | 3%
|
| Price: | 99.784
|
| Yield: | 3.047%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 4.375%
|
| Price: | 99.816
|
| Yield: | 4.398%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Mandatory redemption: | At 101% if acquisition not done by Oct. 1, 2012
|
|
|
| 30-year bonds
|
| Amount: | $1.2 billion
|
| Maturity: | Sept. 15, 2041
|
| Coupon: | 6%
|
| Price: | 99.863
|
| Yield: | 6.01%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Mandatory redemption: | At 101% if acquisition not done by Oct. 1, 2012
|
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