By Cristal Cody
Tupelo, Miss., March 27 – Hewlett Packard Enterprise Co. announced on Monday that subsidiary Everett SpinCo., Inc. (Baa2/BBB/BBB+) closed on a $1.5 billion Rule 144A and Regulation S private placement sale of senior notes.
The offering included $500 million of 2.875% notes due 2020, $500 million of 4.25% notes due 2024 and $500 million of 4.75% notes due 2027.
BofA Merrill Lynch, MUFG and RBC Capital Markets, LLC were the bookrunners, according to an 8-K filing with the Securities and Exchange Commission.
The offering was placed to help fund the merger of Everett SpinCo. with Computer Sciences Corp.
Everett SpinCo. plans to use the proceeds to fund a cash payment to Hewlett Packard Enterprise as part of its merger with Falls Church, Va.-based Computer Sciences. Following the merger expected to close on April 1, Everett SpinCo. will be renamed DXC Technology Co.
Everett SpinCo. is a Palo Alto, Calif.-based technology consulting and services company.
Hewlett Packard Enterprise is a technology company based in Palo Alto, Calif.
| Issuer: | Everett SpinCo., Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, MUFG and RBC Capital Markets, LLC
|
| Settlement date: | March 27
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | Rule 144A, Regulation S, private
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | 2020
|
| Coupon: | 2.875%
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | 2024
|
| Coupon: | 4.25%
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | 2027
|
| Coupon: | 4.75%
|
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