On April 14th, 2025, HP secured a loan of 1 billion dollars as part of its financing, and though the market reacted slightly negatively, FitchRatings seems to be aligned with HP's debt structure. In their analysis of the print business, FitchRatings describes it as a modest decline in 2025 but with longer-term expectations of year-over-year decline—aligned with what the market generally expects.
The surplus of the unsecured loan is expected to be used to repay debt due June 2025—and there seems nothing special about the financing (as part of a mix of cash and debt)—but as HP was attacked earlier by activist investor Carl Icahn in a bold move to merge HP and Xerox years ago, this changed how HP changed its debt structure (essentially to make it impossible using HP’s once low debt/equity ratio to finance a hostile takeover).
Just a few days ago, another activist investor, Elliott Investment Management, acquired $1.5 billion of shares in HP to force the leadership to make HP more attractive to shareholders.
The above doesn’t seem to influence HP Industrial Print much, but of course, it is interesting to follow as HP is a company of tremendous importance to the printing industry.
Source: FitchRatings and Tonernews.com
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