HP enters $4 billion five-year senior unsecured revolving facility

By Tali Rackner

Minneapolis, April 2 – HP Inc. entered into a second amended and restated revolving credit facility on Friday that provides for a $4 billion senior unsecured revolver, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA and JPMorgan Chase Bank, NA are co-administrative agents on the deal, with Citi also serving as administrative processing agent.

Commitments under the credit agreement will be available until March 30, 2023, with up to two one-year extension options.

Borrowings bear interest at Libor plus 87.5 basis points to 162.5 bps, depending on long-term senior unsecured debt ratings.

The commitment fee ranges from 7 bps to 25 bps, also based on debt ratings.

Proceeds may be used for general corporate purposes.

The credit agreement contains a covenant that requires HP to maintain a minimum ratio of consolidated EBITDA to consolidated net interest expense for any period of four consecutive fiscal quarters of 3 times. It must also maintain a maximum ratio of consolidated total debt to consolidated EBITDA as of the last day of any fiscal quarter of 4 times.

HP is a Palo Alto, Calif.-based technology company that has a portfolio of printers, PCs, mobile devices, solutions and services.

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