Published on 3/29/2022 in the Prospect News Investment Grade Daily.
New Issue: HP prices $2 billion notes in two tranches due 2029, 2032
By Marisa Wong
Los Angeles, March 29 – HP Inc. priced $2 billion of notes (Baa2/BBB/BBB+) two parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
HP priced $1 billion of 4% notes due April 15, 2029 at 99.767 to yield 4.038%, or a spread of 155 basis points over Treasuries.
The company also priced $1 billion of 4.2% notes due April 15, 2032 at 99.966 to yield 4.204%, or a spread of 180 bps over Treasuries.
The notes feature a make-whole call and then a par call.
BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include debt repayment and refinancing, according to a previous 424B2 filing with the SEC.
The computer hardware and printer company is based in Palo Alto, Calif.
| Issuer: | HP Inc.
|
| Amount: | $2 billion
|
| Issue: | Notes
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Citigroup Global Markets Inc., MUFG, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., ING Financial Markets LLC, SG Americas Securities, LLC, Standard Chartered Bank, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Loop Capital Markets LLC, Academy Securities, Inc., CastleOak Securities, LP, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Trade date: | March 29
|
| Settlement date: | March 31
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 2029 notes
|
| Amount: | $1 billion
|
| Maturity: | April 15, 2029
|
| Coupon: | 4%
|
| Price: | 99.767
|
| Yield: | 4.038%
|
| Spread: | Treasuries plus 155 bps
|
| Call option: | Make-whole call at Treasuries plus 25 bps any time prior to Feb. 15, 2029; par call after that
|
| Cusip: | 40434LAK1
|
|
|
| 2032 notes
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| Amount: | $1 billion
|
| Maturity: | April 15, 2032
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| Coupon: | 4.2%
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| Price: | 99.966
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| Yield: | 4.204%
|
| Spread: | Treasuries plus 180 bps
|
| Call option: | Make-whole call at Treasuries plus 30 bps any time prior to Jan. 15, 2032; par call after that
|
| Cusip: | 40434LAL9
|
|
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