New Issue: HD Supply prices $1 billion eight-year notes at par to yield 5¾%

By Paul A. Harris

Portland, Ore., March 28 – HD Supply, Inc. priced a $1 billion issue of eight-year senior notes (B3/B) at par to yield 5¾% on Monday, according to a market source.

The yield printed in the middle of the 5 5/8% to 5 7/8% yield talk. Early guidance was 5¾% to 6%, according to sources. Initial guidance was 6%.

There was a significant reverse inquiry factor at play in the deal, sources said.

Barclays was the left lead bookrunner. J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC were the joint bookrunners.

The Atlanta-based industrial distributor plans to use the proceeds to redeem its 11½% senior notes due 2020.

Issuer:	HD Supply, Inc.
Amount:	$1 billion
Maturity:	April 15, 2024
Securities:	Senior notes
Left bookrunner:	Barclays
Joint bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC
Co-managers:	Deutsche Bank Securities Inc., Citigroup Global Markets Inc., UBS Investment Bank Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Baird, BB&T, Raymond James
Coupon:	5¾%
Price:	Par
Yield:	5¾%
First call:	April 15, 2019 at 104.313
Equity clawback:	40% at 105.75 until April 15, 2019
Change-of-control put:	101%
Trade date:	March 28
Settlement date:	April 11
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	5 5/8% to 5 7/8%
Marketing:	Quick to market

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