Summary
Hewlett Packard Enterprise Company (HPE) has announced the redemption of its entire outstanding $1 billion in 4.650% Notes due 2024. This redemption, scheduled for October 29, 2021, will involve paying holders 100% of the principal amount, plus a "make-whole" premium and any accrued interest. The company has formally notified the trustee, The Bank of New York Mellon Trust Company, N.A., to distribute this notice to all registered noteholders.
Key Highlights
- 1HPE is redeeming its entire $1 billion aggregate principal amount of 4.650% Notes due 2024.
- 2The redemption date is set for October 29, 2021.
- 3Noteholders will receive 100% of the principal amount plus a 'make-whole' premium.
- 4Accrued and unpaid interest up to the redemption date will also be paid.
- 5The Bank of New York Mellon Trust Company, N.A. is serving as the trustee for the redemption process.
- 6Formal notice of redemption was issued to noteholders on October 14, 2021.
Frequently Asked Questions
The filing does not explicitly state the reason for the redemption. However, redemptions of debt prior to maturity are often undertaken to refinance at a lower interest rate, to reduce outstanding debt, or to eliminate restrictive covenants associated with the debt.
A 'make-whole' premium is an additional amount paid to bondholders when a bond is redeemed early. It is intended to compensate investors for the loss of future interest payments they would have received if the bond had matured as originally scheduled. The exact calculation is detailed in the bond's indenture.
Bondholders should review the official notice of redemption provided by The Bank of New York Mellon Trust Company, N.A. for specific instructions on how to present their notes for redemption and receive their payment. This information should include details on procedures and the exact payment amount.
HPE will pay the principal amount of $1 billion, plus a 'make-whole' premium, and any accrued and unpaid interest to the redemption date. The exact 'make-whole' premium will depend on market interest rates at the time of redemption, as defined by the indenture governing the notes.