PALO ALTO, Calif., March 19, 2002 -- Hewlett-Packard Company today closed a $4 billion revolving credit facility. The facility replaces a $1 billion facility that would have matured in April. The increase in facility size is in anticipation of the needs of the merged company.
The facility will be used for general corporate purposes, including Commercial Paper backstop. Twenty-seven financial institutions participated in the facility, which was nearly 50 percent oversubscribed.
"We are very pleased with the clear showing of support and confidence from the banking community, despite a difficult credit market," said Larry Tomlinson, HP vice president and treasurer
J.P. Morgan Chase & Co. and Salomon Smith Barney are lead arrangers for the facility, while Deutsche Bank and Royal Bank of Scotland are co-arrangers. The company's existing debt is rated "A2" with negative outlook by Moody's Investor Service and "A-" (CreditWatch negative) by Standard & Poor's.
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