Hewlett-Packard's $3 Billion Bond To Price Later Wed - Source
September 08 2010 - 2:07PM
Dow Jones News
Hewlett-Packard's (HPQ) bond, which is $3 billion in size, has
launched and is scheduled to price later Wednesday, according to
sources familiar with the matter.
The two-year floating rate tranche has launched at 12.5 basis
points over three-month London interbank offered rate, or Libor.
Guidance was in the 15 basis points over three-month Libor
range.
The three-year fixed rate tranche has launched at 50 basis
points over three-month Libor, in line with guidance, and the
five-year tranche has launched at 70 basis over three-month Libor,
also in line with guidance.
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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