Price Guidance Out On Hewlett-Packard's Bond

Price guidance is out on Hewlett-Packard Co.'s (HPQ) benchmark-size bond, according to a person familiar with the matter.

The two-year tranche has guidance in the range of 15 basis points over three-month London interbank offered rate, or Libor. The three-year tranche has guidance in the range of 50 basis points over three-month Libor, while the five-year tranche has guidance in the range of 70 basis over three-month Libor.

The bond, rated A2/A/A, is scheduled to price later Wednesday.

Meanwhile, Goodrich Corp.'s (GR) bond has been increased in size to $600 million from an original $500 million. It has guidance in the range of 100 to 105 basis points over Treasuries.

The bond, rated Baa2/BBB+/BBB+, is also scheduled to price later Wednesday.

A spurt of issuance in the high-grade market has investors vying to buy these deals and many are oversubscribed, said Patrick Sporl, a senior portfolio manager at American Beacon Advisors in Fort Worth, Texas.

"Investors definitely have more money than companies need," Sporl said. "All the deals are heavily oversubscribed."

More than $10 billion in new bonds has surfaced Wednesday, right after a $14 billion issuance day on Tuesday.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com

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