Hewlett Packard Enterprise Company (NYSE: HPE) has recently announced a proposed public offering of $1.35 billion (27 million shares) of series C mandatory convertible preferred stock. The company also expects to grant the underwriters a 30-day option to purchase up to an additional $150 million (3 million shares) of preferred stock to cover over-allotments, if any.
The net proceeds from the offering are intended to be used to fund all or a portion of the consideration for the pending acquisition of Juniper Networks, Inc., to pay related fees and expenses, and for other general corporate purposes.
Each share of preferred stock will have a liquidation preference of $50.00 per share and will automatically convert into a number of shares of common stock on or around September 1, 2027, based on the applicable conversion rate.
Citigroup, J.P. Morgan, and Mizuho will act as joint book-running managers for the offering. HPE has filed a shelf registration statement with the Securities and Exchange Commission (SEC) for the offering.
Hewlett Packard Enterprise (NYSE: HPE) is a global edge-to-cloud company that provides technology solutions as a service, including cloud services, compute, high-performance computing & AI, intelligent edge, software, and storage.
The press release does not constitute an offer to sell or a solicitation of an offer to buy the preferred stock, and any offers of preferred stock will be made only by means of a prospectus supplement relating to the offering and the accompanying base prospectus. As a result of these announcements, the company's shares have moved 1.7% on the market, and are now trading at a price of $17.15. For the full picture, make sure to review Hewlett Packard Enterprise's 8-K report.
