NEW YORK: Technology giant Hewlett-Packard has increased the size of a
planned two-part debt offering in a sign that the company is seeing strong
demand.
Hewlett-Packard plans to sell $1.5 billion of global debt, up from an
originally planned $1.25 billion, according to co-lead manager Banc of America
Securities. The sale was expected on Friday.
The company plans to sell $1 billion of five-year notes at a yield spread of
1.50 to 1.52 percentage points more than Treasuries. It also plans to sell $500
million of 10-year notes at 1.73 to 1.75 percentage points more than Treasuries.
The offering is the first bond sale from the company since its $18.7 billion
acquisition of Compaq Computer Corp. Hewlett-Packard is rated "A3" by
Moody's Investors Service and "A-minus" by Standard & Poor's.
Deutsche Bank Securities and J.P. Morgan are also arranging the sale.
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