Hewlett Packard's $3 Billion Bond Launches
September 08 2010 - 2:33PM
Dow Jones News
Hewlett-Packard Co.'s (HPQ) bond, which is $3 billion in size,
has launched and is scheduled to price later Wednesday, according
to people familiar with the matter.
The two-year floating rate $800 million 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 $1.1 billion fixed rate tranche has launched at
50 basis points over Tresurys, in line with guidance and the
five-year $1.1 billion tranche has launched at 70 basis over
Treasurys, also in line with guidance.
The bond, rated A2/A/A, is scheduled to price later
Wednesday.
American Express Credit Corp.'s bond has been increased in size
to $2 billion from an original $1 billion.
The five-year bond, rated A2/BBB+/A+, is also scheduled to price
later Wednesday.
Meanwhile, Goodrich Corp.'s 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, Tex.
"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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