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Hewlett-Packard boosts debt sale to $1.5 bn

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CIOL Bureau
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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.

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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.

(C) Reuters Limited.

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