HP Inc. (NYSE: HPQ) has announced that it will redeem all of its
remaining $472,342,000 3.750% Global Notes due December 1, 2020 and
all of its remaining $395,178,000 4.300% Global Notes due June 1,
2021 (collectively, the “Notes” and such transaction, the
“Redemption”) that are outstanding on July 22, 2020. The
redemption price of the Notes will be 100% of the principal amount
plus a make-whole premium and accrued and unpaid interest to, but
excluding, the redemption date, in each case in accordance with the
terms and subject to the conditions of the respective Notes and the
indenture governing the Notes.
Notices of redemption are being sent by The Bank of New York
Mellon Trust Company, N.A., the trustee for the Notes, to all
currently registered holders of the Notes.
This announcement completes a series of recent proactive
actions HP has taken to solidify its balance sheet, including:
- HP’s repurchase of approximately $682.5 million aggregate
principal amount of its outstanding: (i) 3.750% Global Notes
due December 1, 2020; (ii) 4.300% Global Notes due
June 1, 2021; (iii) 4.375% Global Notes due
September 15, 2021; and (iv) 4.650% Global Notes due
December 9, 2021, pursuant to offers to purchase for cash (the
“Tender Offers”), which settled on June 19, 2020.
- The successful pricing on June 10, 2020 and closing on
June 17, 2020 of HP’s underwritten public offering of $3.0
billion aggregate principal amount of senior unsecured notes,
consisting of $1.15 billion aggregate principal amount of its
2.200% notes due 2025; $1.0 billion aggregate principal amount
of its 3.000% notes due 2027; and $850.0 million aggregate
principal amount of its 3.400% notes due 2030. Of the $3.0
billion note issuance, approximately $0.7 billion of the net
proceeds from the offering have been used for the Tender Offers and
approximately $0.9 billion will be used for the Redemption,
resulting in a net cash increase of approximately $1.4
billion.
- Entering on May 29, 2020 into a new 364-day senior,
unsecured revolving credit facility with aggregate lending
commitments of $1.0 billion. Combined with HP’s existing $4.0
billion revolving credit facility due March 30, 2023, HP now has
aggregate credit facilities totaling $5.0 billion and commercial
paper issuance capacity of up to $6.0 billion.
“HP’s balance sheet is a source of strength for the company and
a key part of our overall company strategy,” said Zac Nesper, HP’s
Treasurer. “Our prudent financial policy, commitment to an
investment grade rating and access to the debt capital markets
enable HP to make value-creating investments through a disciplined,
returns-based framework.”
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of any
securities of HP in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful.
Forward-looking statementsThis press release
contains forward-looking statements based on current expectations
and assumptions that involve risks and uncertainties. If the
risks or uncertainties ever materialize or the assumptions prove
incorrect, the results of HP and its consolidated subsidiaries may
differ materially from those expressed or implied by such
forward-looking statements and assumptions.
All statements other than statements of historical fact are
statements that could be deemed forward-looking statements,
including, but not limited to, any statements regarding the
potential impact of the COVID-19 pandemic and the actions by
governments, businesses and individuals in response to the
situation; projections of net revenue, margins, expenses, effective
tax rates, net earnings, net earnings per share, cash flows,
benefit plan funding, deferred taxes, share repurchases, foreign
currency exchange rates or other financial items; any projections
of the amount, timing or impact of cost savings or restructuring
and other charges, planned structural cost reductions and
productivity initiatives; any statements of the plans, strategies
and objectives of management for future operations, including, but
not limited to, our business model and transformation, our
sustainability goals, our go-to-market strategy, the execution of
restructuring plans and any resulting cost savings, net revenue or
profitability improvements or other financial impacts; any
statements concerning the expected development, performance, market
share or competitive performance relating to products or services;
any statements regarding current or future macroeconomic trends or
events and the impact of those trends and events on HP and its
financial performance; any statements regarding pending
investigations, claims or disputes; any statements of expectation
or belief, including with respect to the timing and expected
benefits of acquisitions and other business combination and
investment transactions; and any statements of assumptions
underlying any of the foregoing. Forward-looking statements
can also generally be identified by words such as “future,”
“anticipates,” “believes,” “estimates,” “expects,” “intends,”
“plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,”
“may,” and similar terms.
Risks, uncertainties and assumptions include factors relating to
the effects of the COVID-19 pandemic and the actions by
governments, businesses and individuals in response to the
situation, the effects of which may give rise to or amplify the
risks associated with many of these factors listed here; HP’s
ability to execute on its strategic plan, including the recently
announced initiatives, business model changes and transformation;
execution of planned structural cost reductions and productivity
initiatives; HP’s ability to complete any contemplated share
repurchases, other capital return programs or other strategic
transactions; the need to address the many challenges facing HP’s
businesses; the competitive pressures faced by HP’s businesses;
risks associated with executing HP’s strategy and business model
changes and transformation; successfully innovating, developing and
executing HP’s go-to-market strategy, including online, omnichannel
and contractual sales, in an evolving distribution and reseller
landscape; the development and transition of new products and
services and the enhancement of existing products and services to
meet customer needs and respond to emerging technological trends;
successfully competing and maintaining the value proposition of
HP’s products, including supplies; the need to manage third-party
suppliers, manage HP’s global, multi-tier distribution network,
limit potential misuse of pricing programs by HP’s channel
partners, adapt to new or changing marketplaces and effectively
deliver HP’s services; challenges to HP’s ability to accurately
forecast inventories, demand and pricing, which may be due to HP’s
multi-tiered channel, sales of HP’s products to unauthorized
resellers or unauthorized resale of HP’s products; integration and
other risks associated with business combination and investment
transactions; the results of the restructuring plans, including
estimates and assumptions related to the cost (including any
possible disruption of HP’s business) and the anticipated benefits
of the restructuring plans; the protection of HP’s intellectual
property assets, including intellectual property licensed from
third parties; the hiring and retention of key employees; the
impact of macroeconomic and geopolitical trends and events; risks
associated with HP’s international operations; the execution and
performance of contracts by HP and its suppliers, customers,
clients and partners; disruptions in operations from system
security risks, data protection breaches, cyberattacks, extreme
weather conditions, medical epidemics or pandemics such as the
COVID-19 pandemic, and other natural or manmade disasters or
catastrophic events; the impact of changes in tax laws; potential
liabilities and costs from pending or potential investigations,
claims and disputes; and other risks that are described in HP’s
Annual Report on Form 10-K for the fiscal year ended October 31,
2019, HP’s Quarterly Reports on Form 10-Q for the fiscal quarters
ended January 31, 2020 and April 30, 2020, and HP’s other
filings with the Securities and Exchange Commission (the
“SEC”).
As in prior periods, the financial information set forth in this
document, including any tax-related items, reflects estimates based
on information available at this time. While HP believes
these estimates to be reasonable, these amounts could differ
materially from reported amounts in HP’s Quarterly Report on Form
10-Q for the fiscal quarter ended July 31, 2020, Annual Report on
Form 10-K for the fiscal year ended October 31, 2020 and HP’s other
filings with the SEC. The forward-looking statements in this
press release are made as of the date of this press release and HP
assumes no obligation and does not intend to update these
forward-looking statements.
HP’s Investor Relations website at investor.hp.com contains a
significant amount of information about HP, including financial and
other information for investors. HP encourages investors to
visit its website from time to time, as information is updated, and
new information is posted. The content of HP’s website is not
incorporated by reference into this press release or in any other
report or document HP files with the SEC, and any references to
HP’s website are intended to be inactive textual references
only.
About HP Inc.
HP Inc. creates technology that makes life better for everyone,
everywhere. Through our product and service portfolio of personal
systems, printers and 3D printing solutions, we engineer
experiences that amaze. More information about HP Inc. is available
at hp.com.
© Copyright 2020 HP Development Company, L.P. The
information contained herein is subject to change without notice.
The only warranties for HP products and services are set forth in
the express warranty statements accompanying such products and
services. Nothing herein should be construed as constituting an
additional warranty. HP shall not be liable for technical or
editorial errors or omissions contained herein.
Editorial contacts
HP Inc. Media
RelationsMediaRelations@hp.com
HP Inc. Investor
RelationsInvestorRelations@hp.com
HP (NYSE:HPQ)
Historical Stock Chart
From Feb 2024 to Mar 2024
HP (NYSE:HPQ)
Historical Stock Chart
From Mar 2023 to Mar 2024