Hewlett Packard Enterprise Co. (HPE) has announced the pricing of its public offering, which consists of $1.35 billion in Series C Mandatory Convertible Preferred Stock (27 million shares). The shares are being offered in an underwritten registered public offering at $50.00 per share, which also serves as the liquidation preference per share.
Additionally, HPE has provided underwriters with a 30-day option to purchase up to an extra $150 million worth of Preferred Stock (3 million shares) to cover over-allotments, if necessary.
HPE estimates that the net proceeds from the Offering will be approximately $1.32 billion, or $1.46 billion if the underwriters fully exercise their option to purchase additional shares.
The company plans to allocate the net proceeds from the Offering to partly or fully fund the acquisition of Juniper Networks, Inc., which was announced previously. The funds will also be used to pay related fees and expenses. Any remaining proceeds will be used for general corporate purposes.
The Offering is anticipated to be completed on or around September 13, 2024, pending certain customary closing conditions.
