By Cristal Cody
Tupelo, Miss., April 6 – Hewlett Packard Enterprise Co. sold $2.25 billion of senior notes (Baa2/BBB/BBB+) in two tranches on Monday, according to a market source.
A $1.25 billion tranche of 4.45% notes due Oct. 2, 2023 priced at a spread of Treasuries plus 412.5 basis points, compared to initial guidance in the Treasuries plus 462.5 bps area.
A $1 billion tranche of 4.65% notes due Oct. 1, 2024 priced at a spread of Treasuries plus 425 bps.
The four-year notes were talked to price at the 475 bps spread area.
A tranche of seven-year notes that was initially talked to price at the 475 bps spread area was dropped from the final offering.
BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
The technology company is based in Palo Alto, Calif.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $2.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Trade date: | April 6
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 2, 2023
|
| Coupon: | 4.45%
|
| Spread: | Treasuries plus 412.5 bps
|
| Price guidance: | Treasuries plus 462.5 bps area
|
|
|
| Four-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 4.65%
|
| Spread: | Treasuries plus 425 bps
|
| Price guidance: | Treasuries plus 475 bps area
|
|
|
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