Hewlett Packard announces $1.35 billion stock offering after-hours

Hewlett Packard Enterprise (HPE) has initiated a public offering of $1.35 billion, which consists of 27 million shares of Series C mandatory convertible preferred stock. This announcement came after the market closed on Monday, leading to a decline in HPE shares by 6.08%, bringing the price down to $16.53. The company also plans to provide underwriters with a 30-day option to purchase an additional $150 million worth of preferred stock to manage any over-allotments. The proceeds from this offering are intended to finance part of the acquisition of Juniper Networks, Inc., which has been previously announced. Additionally, the funds will cover related fees and expenses, with any remaining proceeds allocated for general corporate purposes. Each share of the preferred stock will have a liquidation preference of $50 and is set to convert into common stock around September 1, 2027, based on a specified conversion rate. Hewlett Packard aims to list the preferred stock on the New York Stock Exchange under the ticker symbol “HPEPrC.” This strategic move is part of the company's broader financial planning and growth strategy, particularly in light of its ongoing acquisition efforts. The market's reaction to the announcement reflects investor sentiment regarding the company's financial maneuvers and future prospects. As HPE navigates this offering, it will be crucial to monitor how these developments impact its stock performance and overall market position in the coming months.