Published on 1/4/2021 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $3 billion of notes in three tranches
Spokane, Wash., Jan. 4 – Home Depot Inc. priced a combined $3 billion of notes (A2/A) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The offering included $500 million of 0.9% notes due March 15, 2028 priced at 99.383 to yield 0.989%, or 35 basis points over Treasuries.
Home Depot sold $1.25 billion of 1.375% notes due March 15, 2031 to yield 52 bps over Treasuries. The notes priced at 99.404 to yield 1.438%.
The issuer also sold $1.25 billion of 2.375% notes due March 15, 2051 to yield 77 bps over Treasuries. The notes priced at 98.656 to yield 2.438%.
Bookrunners were BofA Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used to acquire HD Supply Holdings, Inc. and for general corporate purposes.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Bookrunners: | BofA Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Siebert Williams Shank & Co., LLC, TD Securities (USA) LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 7
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2028
|
| Amount: | $500 million
|
| Maturity: | March 15, 2028
|
| Coupon: | 0.9%
|
| Price: | 99.383
|
| Yield: | 0.989%
|
| Spread: | 35 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 7.5 bps until Jan. 15, 2028; par call thereafter
|
|
|
| Notes due 2031
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2031
|
| Coupon: | 1.375%
|
| Price: | 99.404
|
| Yield: | 1.438%
|
| Spread: | 52 bps over Treasuries
|
| Call: | Make-whole call at 10 bps over Treasuries until Dec. 15, 2030; par call thereafter
|
|
|
| Notes due 2051
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| Amount: | $1.25 billion
|
| Maturity: | March 15, 2051
|
| Coupon: | 2.375%
|
| Price: | 98.656
|
| Yield: | 2.438%
|
| Spread: | 77 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 15 bps until Sept. 15, 2050; par call thereafter
|
|
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