Published on 9/8/2015 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $1.5 billion two-part notes offering due 2017, 2025
By Aleesia Forni
Virginia Beach, Sept. 8 – Home Depot Inc. priced a $1.5 billion two-part offering of senior notes (A2/A/A) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The offering included $500 million of two-year floating-rate notes sold at par to yield Libor plus 37 basis points.
Pricing was at the tight end of the Libor plus 40 bps area guidance.
Also, a $1 billion tranche of 3.35% 10-year notes sold at 99.857 to yield 3.367%, or 117 bps over Treasuries.
The notes were guided in the 120 bps area over Treasuries following talk in the range of 130 bps to 135 bps over Treasuries.
Plans for a two-year fixed-rate note, which was talked in the range of Treasuries plus 55 bps to 60 bps, were dropped prior to the deal’s launch.
BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the funding of the company’s acquisition of Interline and repurchasing shares of common stock.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, 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., Mizuho Securities USA Inc., RBC Capital Markets, LLC, 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: | Sept. 8
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2017
|
| Coupon: | Libor plus 37 bps
|
| Price: | Par
|
| Yield: | Libor plus 37 bps
|
| Price guidance: | Libor plus 40 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2025
|
| Coupon: | 3.35%
|
| Price: | 99.857
|
| Yield: | 3.367%
|
| Spread: | Treasuries plus 117 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 130 bps to 135 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to June 15, 2025, then callable at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
