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Now Its HPE’s Turn to Borrow
$9.5 Billion, for Juniper Networks Acquisition.
The global IT giant Hewlett Packard Enterprise (HPE) is reaching out to potential bond investors today, starting at 10:00 a.m. New York time. JPMorgan Chase & Co. is overseeing the logistics, and a bond offering may soon follow. According to a company filing, the planned deal is expected to consist of $6.5 billion in investment-grade unsecured bonds with maturities ranging from five to 30 years, alongside a $3 billion term loan. Additionally, the company priced $1.35 billion in preferred stock on Tuesday, as reported in a statement.A spokesperson for HPE declined to comment on the proposed transaction.
This bond sale is part of a broader trend of companies seeking to fund acquisitions through debt issuance. On Tuesday, Oneok Inc. issued $7 billion in senior unsecured notes across six tranches, receiving $31 billion in orders. Similarly, last month Kroger Co. raised $10.5 billion in notes to finance its acquisition of Albertsons Cos., marking one of the largest corporate bond deals of the year.
As the U.S. presidential election approaches in November, borrowers are rushing to secure financing. Additionally, with expectations that the Federal Reserve may cut interest rates later this month, the average yield for top-tier firms has dropped to its lowest level in over two years.
In January, HPE agreed to acquire Juniper Networks for $14 billion, aiming to significantly expand its networking business—a sector critical for directing data flow between devices and across the Internet. The acquisition received regulatory approval from both the UK’s antitrust authorities and the European Union last month.
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