Published on 6/9/2014 in the Prospect News Investment Grade Daily.
New Issue: Home Depot sells $2 billion of senior notes in tranches due 2019, 2045
By Aleesia Forni
Virginia Beach, June 9 – Home Depot Inc. priced $2 billion of senior notes (A2/A/) in tranches due 2019 and 2045, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 2% five-year notes priced at 99.617 to yield 2.081%, or Treasuries plus 40 basis points.
There was also $1 billion of 4.4% long 30-year bonds priced at 98.447 to yield 4.494%, or Treasuries plus 105 bps.
Barclays, BofA Merrill Lynch, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes, including repurchasing shares of its common stock.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities 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, Lebenthal & Co., LLC
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2019
|
| Coupon: | 2%
|
| Price: | 99.617
|
| Yield: | 2.081%
|
| Spread: | Treasuries plus 40 bps
|
| Price talk: | Treasuries plus 45 bps area
|
| Make-whole call: | Treasuries plus 10 bps prior to May 15, 2019, then callable at par
|
|
|
| Long 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2045
|
| Coupon: | 4.4%
|
| Price: | 98.447
|
| Yield: | 4.494%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to Sept. 15, 2044, then callable at par
|
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