The investment-grade market is churning out two big-name deals as a potential $4 billion credit for Hewlett-Packard Company launches at the end of this week and a $2.5 billion refinancing for Walt Disney is already in the market. Citibank/ Salomon Smith Barney has a hand in both loans, leading the H-P deal with J.P. Morgan.
The Disney loan refinances a $2.3 billion commercial paper backstop approaching maturity, said a banker. Disney also has a $2.2 billion loan backing a commercial paper program, expiring in 2005. The Citi-led loan is expected to wrap up at the end of the month, she added. Calls to Disney officials were not returned. Citibank declined comment on both blue-chip name companies.
J.P. Morgan and Citibank's long awaited financing for Hewlett-Packard will launch at the end of the week, a banker said. The size of the deal and pricing could not be ascertained by press time. The new backstop is being raised to replace the maturing five-year facility, according to Ken Frier, assistant treasurer at Hewlett (LMW, 12/24). One banker said initially a $6 billion deal was proposed, but this has now been dropped to less than $4 billion. This will be halved if the merger with Compaq is terminated, the banker added. Some banks have already signed on for $500 million tickets, one banker said, though another contradicted this and said banks balked at the ticket size.