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Hewlett Packard Enterprise Launches $1.35 Billion Public Offering of Series C Convertible Preferred Stock
HOUSTON–Hewlett Packard Enterprise Company (NYSE: HPE) announced today the pricing for its public offering of Series C Mandatory Convertible Preferred Stock, raising approximately $1.35 billion through the issuance of 27 million shares. Each share is priced at a public offering price and liquidation preference of $50.00. Additionally, the company has provided underwriters with a 30-day option to acquire up to $150 million worth of Preferred Stock to manage any over-allotments.
The net proceeds from the offering are expected to be around $1.32 billion, or approximately $1.46 billion if the underwriters decide to exercise their option for the additional shares, after deducting underwriting discounts but prior to covering any associated expenses. The funds generated from this offering are earmarked to support the pending acquisition of Juniper Networks, as announced previously, along with covering related fees. Any remaining proceeds will go toward general corporate use. The transaction is anticipated to close around September 13, 2024, pending the completion of standard closing conditions.
The Preferred Stock will convert into a predetermined number of shares of HPE common stock, ranging from 2.5352 to 3.1056 shares, on or around September 1, 2027, unless converted earlier by shareholders or redeemed by the company. This conversion rate will be established based on the average volume-weighted price of HPE’s common stock during a specified 20-day trading period leading up to the conversion date. HPE plans to pay dividends on the Preferred Stock at an annual rate of 7.625% on the $50 liquidation preference, with payments scheduled for March, June, September, and December starting December 1, 2024, and concluding in September 2027. Notably, dividends may be distributed in cash, shares of common stock, or a combination of both. There is currently no established public market for the Preferred Stock, though HPE intends to list it on the New York Stock Exchange under the ticker symbol HPEPrC.
The company emphasized that this announcement serves only for informational purposes and does not constitute an offer for the sale or solicitation of offers to purchase the Preferred Stock. Offers will solely be extended through an official prospectus supplement corresponding to the Offering.
Citigroup, J.P. Morgan, and Mizuho serve as joint book-running managers for this public offering, for which HPE has filed a shelf registration statement with the Securities and Exchange Commission (SEC). Interested investors are advised to review the preliminary and accompanying prospectus to gain comprehensive insights regarding HPE and the Offering. These documents can be accessed free of charge on the SEC’s EDGAR database or can be requested from the underwriters.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise (NYSE: HPE) operates as a global edge-to-cloud business, helping organizations draw value from their data across various platforms. With a commitment to technological innovation, HPE offers a wide array of solutions encompassing Cloud Services, Compute, AI, Intelligent Edge, Software, and Storage, aiming to enhance operational efficiency and open new business avenues for clients.
Forward-Looking Statements
This announcement contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. These projections involve inherent risks and uncertainties, and actual results may diverge significantly based on changes in market conditions, company strategy execution, and economic factors. Terms like “believe”, “expect”, “anticipate”, and similar expressions identify these forward-looking statements. HPE does not intend to update these statements unless required by law, and investors should refer to HPE’s filings with the SEC for further information regarding risks and uncertainties.
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