Published on 3/7/2023 in the Prospect News Investment Grade Daily.
New Issue: Hewlett Packard Enterprise sells $1.7 billion notes due 2024, 2026
By Marisa Wong
Los Angeles, March 7 – Hewlett Packard Enterprise Co. priced $1.7 billion of notes (Baa2/BBB/BBB+) in two tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The company priced $1.3 billion of 5.9% notes due Oct. 1, 2024 at 99.934 to yield 5.944%, or a spread of 95 basis points over Treasuries.
The company also priced $400 million of 6.102% notes due April 1, 2026 at 99.997 to yield 6.102%, or a spread of 140 bps over Treasuries.
Should there be a change of control, the notes will be putable at 101. The notes will have optional make-whole calls and in the case of the 2026 notes a par call option.
J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and NatWest Markets Securities Inc. are the joint bookrunners.
Proceeds will be used, with cash on hand, to refinance upcoming debt maturities and for general corporate purposes.
The technology company is based in Spring, Tex.
| Issuer: | Hewlett Packard Enterprise Co.
|
| Amount: | $1.7 billion
|
| Issue: | Notes
|
| Bookrunners: | J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and NatWest Markets Securities Inc.
|
| Co-managers: | Citigroup Global Markets Inc., BNP Paribas Securities Corp., BofA Securities, Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Santander US Capital Markets LLC, TD Securities (USA) LLC, Barclays, Goldman Sachs & Co. LLC, ING Financial Markets LLC, SG Americas Securities, LLC., Loop Capital Markets LLC, U.S. Bancorp Investments, Inc., ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., Standard Chartered Bank 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
|
| Change-of-control put: | At 101
|
| Trade date: | March 7
|
| Settlement date: | March 21
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
|
|
| 2024 notes
|
| Amount: | $1.3 billion
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 5.9%
|
| Price: | 99.934
|
| Yield: | 5.944%
|
| Spread: | Treasuries plus 95 bps
|
| Call option: | Make-whole call at Treasuries plus 15 bps at any time
|
| Cusip: | 42824CBL2
|
|
|
| 2026 notes
|
| Amount: | $400 million
|
| Maturity: | April 1, 2026
|
| Coupon: | 6.102%
|
| Price: | 99.997
|
| Yield: | 6.102%
|
| Spread: | Treasuries plus 140 bps
|
| Call options: | Make-whole call at Treasuries plus 25 bps prior to April 1, 2024; par call after that
|
| Cusip: | 42824CBM0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
