By Andrea Heisinger
New York, March 28 - Home Depot, Inc. priced $2 billion of senior notes (Baa1/BBB+/BBB+) in two parts on Monday, a source away from the sale said before the close.
The $1 billion of 4.4% 10-year notes sold at 99.824 to yield 4.422%, or Treasuries plus 97 basis points. The notes were sold at the tight end of guidance in the 100 bps area.
The notes have a make-whole call at 15 bps over Treasuries.
A second tranche of $1 billion 5.95% 30-year bonds priced at 99.528 to yield 5.984% with a spread of 147 bps over Treasuries. This was at the low end of guidance in the 150 bps area.
The 30-year bonds have a make-whole call at 25 bps over Treasuries.
Both tranches feature a change-of-control put at 101%.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch were the bookrunners.
Co-managers were Barclays Capital Inc., BNY Mellon Capital Markets LLC, Morgan Stanley & Co. Inc., RBS Securities Inc., TD Securities (USA) LLC, Fifth Third Securities, Inc., RBC Capital Markets Corp., SunTrust Robinson Humphrey, Inc., the Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc.
Proceeds are being used to replace cash funds used to repay $1 billion of 5.2% notes that matured on March 1, and any remainder will be used to repurchase common stock.
The Home Depot last priced bonds in a $1 billion deal in two parts on Sept. 7, 2010. The 3.95% 10-year notes from that sale were sold at a much-steeper spread of 135 bps, and the 5.4% 30-year bonds were priced at 175 bps.
The home-improvement retailer is based in Atlanta.
| Issuer: | Home Depot, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Merrill Lynch
|
| Co-managers: | Barclays Capital Inc., BNY Mellon Capital Markets LLC, Morgan Stanley & Co. Inc., RBS Securities Inc., TD Securities (USA) LLC, Fifth Third Securities, Inc., RBC Capital Markets Corp., SunTrust Robinson Humphrey, Inc., the Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | March 28
|
| Settlement date: | March 31
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2021
|
| Coupon: | 4.4%
|
| Price: | 99.824
|
| Yield: | 4.422%
|
| Spread: | Treasuries plus 97 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2041
|
| Coupon: | 5.95%
|
| Price: | 99.528
|
| Yield: | 5.984%
|
| Spread: | Treasuries plus 147 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps area
|
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