June 1, 2020
HP Inc. (HP) has secured a 364-day revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, for a senior, unsecured revolving credit facility with aggregate lending commitments of $1 billion (€0.89 billion). Loans under the revolving credit facility may be used for general corporate purposes.
The facility is for 364 days running from 29 May 2020 to 28 May 2021.
Last week HP posted Second quarter net revenue of $12.5 billion (€11.23 billion), down 11.2% from the prior-year period.
Printing net revenue was down 19% year over year with a 13.2% operating margin. Total hardware units were down 23% with Commercial hardware units down 25% and Consumer hardware units down 22%. Supplies net revenue was down 15%.
Personal Systems net revenue was down 7% year over year with a 6.6% operating margin. Commercial net revenue decreased 7% and Consumer net revenue decreased 7%. Total units were down 5% with Notebooks units up 5% and Desktops units down 23%.
For fiscal 2020, given the level of uncertainty around the duration of the pandemic, the timing and pace of economic recovery and the potential impact of a resurgence in cases, HP anticipates a much wider range of outcomes for the year. As a result, HP will not be providing an outlook for the fiscal year 2020.
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