HP Inc. Announces Redemption of Notes

PALO ALTO, Calif., June 23, 2020 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) has announced that it will redeem all of its remaining $472,342,000 3.750% Global Notes due December 1, 2020 and all of its remaining $395,178,000 4.300% Global Notes due June 1, 2021 (collectively, the “Notes” and such transaction, the “Redemption”) that are outstanding on July 22, 2020.  The redemption price of the Notes will be 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to, but excluding, the redemption date, in each case in accordance with the terms and subject to the conditions of the respective Notes and the indenture governing the Notes. 

Notices of redemption are being sent by The Bank of New York Mellon Trust Company, N.A., the trustee for the Notes, to all currently registered holders of the Notes.

This announcement completes a series of recent proactive actions HP has taken to solidify its balance sheet, including:

• HP’s repurchase of approximately $682.5 million aggregate principal amount of its outstanding: (i) 3.750% Global Notes due December 1, 2020; (ii) 4.300% Global Notes due June 1, 2021; (iii) 4.375% Global Notes due September 15, 2021; and (iv) 4.650% Global Notes due December 9, 2021, pursuant to offers to purchase for cash (the “Tender Offers”), which settled on June 19, 2020.
• The successful pricing on June 10, 2020 and closing on June 17, 2020 of HP’s underwritten public offering of $3.0 billion aggregate principal amount of senior unsecured notes, consisting of $1.15 billion aggregate principal amount of its 2.200% notes due 2025; $1.0 billion aggregate principal amount of its 3.000% notes due 2027; and $850.0 million aggregate principal amount of its 3.400% notes due 2030.  Of the $3.0 billion note issuance, approximately $0.7 billion of the net proceeds from the offering have been used for the Tender Offers and approximately $0.9 billion will be used for the Redemption, resulting in a net cash increase of approximately $1.4 billion.
• Entering on May 29, 2020 into a new 364-day senior, unsecured revolving credit facility with aggregate lending commitments of $1.0 billion.  Combined with HP’s existing $4.0 billion revolving credit facility due March 30, 2023, HP now has aggregate credit facilities totaling $5.0 billion and commercial paper issuance capacity of up to $6.0 billion.

“HP’s balance sheet is a source of strength for the company and a key part of our overall company strategy,” said Zac Nesper, HP’s Treasurer. “Our prudent financial policy, commitment to an investment grade rating and access to the debt capital markets enable HP to make value-creating investments through a disciplined, returns-based framework.”