Published on 9/3/2013 in the Prospect News Investment Grade Daily.
New Issue: Home Depot sells $3.25 billion three-part offering of senior notes
By Aleesia Forni
Virginia Beach, Va., Sept. 3 - Home Depot Inc. priced an issue of senior notes in three parts on Tuesday, according to a syndicate source and a filing with the Securities and Exchange Commission.
All three tranches priced tighter than talk.
The company priced $1.15 billion of 2.25% notes due 2018 with a spread of Treasuries plus 60 basis points, or 99.859 to yield 2.28%. That compared with talk for a spread of 65 bps.
A $1.1 billion tranche of 3.75% notes due 2024 sold with a spread of Treasuries plus 95 bps, versus talk of a 100 bps spread.
Pricing was at 99.481 to yield 3.811%.
Finally, $1 billion of 4.875% notes due 2044 were priced at Treasuries plus 115 bps. Talk was 120 bps for this tranche.
The notes were sold at 98.506 to yield 4.971%.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes including the refinancing of $1.25 billion of the company's 5.25% senior notes due Dec. 16 and repurchasing shares of its common stock.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.25 billion
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | Barclays Capital Inc., BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., Fifth Third Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, The Williams Capital Group LP, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Lebenthal & Co., LLC
|
| Trade date: | Sept. 3
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | Sept. 10, 2018
|
| Coupon: | 2.25%
|
| Price: | 99.859
|
| Yield: | 2.28%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 65 bps
|
| Call features: | Prior to Aug. 10, 2018, make-whole call at Treasuries plus 10 bps, par call on and after Aug. 10, 2018
|
|
|
| 10.5-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.481
|
| Yield: | 3.811%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 100 bps
|
| Call features: | Prior to Nov. 15, 2023, make-whole call at Treasuries plus 15 bps, par call on and after Nov. 15, 2023
|
|
|
| 30.5-year
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2044
|
| Coupon: | 4.875%
|
| Price: | 98.506
|
| Yield: | 4.971%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 120 bps
|
| Call features: | Prior to Aug. 15, 2043, make-whole call at Treasuries plus 20 bps, par call on and after Aug. 15, 2043
|
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