Published on 4/2/2013 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $2 billion of 10-year, 30-year senior notes
By Andrea Heisinger
New York, April 2 - Home Depot, Inc. priced $2 billion of senior notes (A3/A-/) in tranches due 2023 and 2043 on Tuesday, a market source said.
The $1 billion of 2.7% 10-year notes sold at 99.844 to yield 2.718% with a spread of Treasuries plus 85 basis points. The notes were talked in the 85 bps area, the source said.
There is a make-whole call at Treasuries plus 15 bps until Jan. 1, 2023 and a par call after that date.
A $1 billion tranche of 4.2% 30-year bonds priced at 99.578 to yield 4.225% with a spread of 110 bps over Treasuries. Guidance was in the 110 bps area.
The tranche has a make-whole call at Treasuries plus 20 bps until Oct. 1, 2042 and a par call after.
The notes feature a change-of-control put at 101%.
Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including common stock repurchases.
The Atlanta-based home improvement retailer was last in the U.S. bond market with a $2 billion sale of notes in two parts on March 28, 2011. That offering included a 4.4% 10-year note priced at 97 bps over Treasuries and a 5.95% 30-year bond sold at 147 bps over Treasuries.
| Issuer: | Home Depot, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Goldman Sachs & Co., RBC Capital Markets, LLC, RBS Securities Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Change-of-control put: | 101%
|
| Trade date: | April 2
|
| Settlement date: | April 5
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2023
|
| Coupon: | 2.7%
|
| Price: | 99.844
|
| Yield: | 2.718%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to Jan. 1, 2023, par call after
|
| Price talk: | 85 bps area
|
|
|
| 30-year bonds
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| Amount: | $1 billion
|
| Maturity: | April 1, 2043
|
| Coupon: | 4.2%
|
| Price: | 99.578
|
| Yield: | 4.225%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to Oct. 1, 2042, par call after
|
| Price talk: | 110 bps area
|
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