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HP Plans Debt Amid Commercial Paper ‘Crack’ Cutback

Hewlett-Packard Co., the world’s largest computer maker, plans to sell $2 billion of bonds as soon as today to repay commercial paper borrowings as companies cut back on the short-term IOUs.

“I love the fact companies are getting off that ‘CP crack,’ as we call it, because it is enticing at such low levels that you become quite easily addicted to it,” said Timothy Cox, an executive director of debt capital markets at Mizuho Securities USA in New York. “It tells us more and more that companies are looking to extend debt, get rid of short-term obligations and clean their balance sheets up.”