HP Sells Additional $2B in Debt
NEW YORK (
) --
Hewlett-Packard
(HPQ) - Get Report
said late Thursday it's sold another $2 billion worth of debt.
In a Form 8-K filing with the
Securities and Exchange Commission
, the Dow component said it sold $650 million worth of 2.2% notes due in Dec. 1, 2015 and $1.35 billion worth of 3.75% notes due Dec. 1, 2020. As of Oct. 31, the company's long-term debt stood at $15.26 billion, while its short-term debt was $7.05 billion.
The stock closed Thursday's regular session at $43.11, up 1.3%. Year-to-date, the shares are down more than 17%, but they've bounced almost 14% since scraping a 52-week low of $38.03 on Aug. 25.
International Strategy & Investment Group
issued a research note following the debt offering, saying it estimates the new debt will increase HP's interest expense by $16 million per quarter.
The firm, which has a buy rating and a $54 price target, noted that HP also issued $3 billion worth of debt in September, and said that while the company plans to use the proceeds to repay a portion of its existing commercial paper, it could also make other moves.
"We expect the additional cash influx to help it aggressively pursue share buybacks and opportunistic acquisitions," ISI said. HP has made a number of acquisitions of late, most notably outbidding
Dell Inc.
(DELL) - Get Report
for
3PAR Inc.
.
HP
reported strong fiscal fourth-quarter results on Nov. 22
, posting a profit of $3.1 billion, or $1.33 a share, for the three months ended Oct. 31 on revenue of $33.28 billion. Wall Street was looking for earnings of $1.27 a share on revenue of $32.75 billion in the October period.
--
Written by Michael Baron in New York.
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