Published on 2/3/2016 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $3 billion of notes due 2021, 2026 and 2046
By Cristal Cody
Tupelo, Miss., Feb. 3 – Home Depot Inc. sold $3 billion of senior notes (A2/A/A) in three tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
In the first tranche, Home Depot priced $1.35 billion of 2% notes due April 1, 2021 at 99.644 to yield 2.073%. The five-year notes priced at a spread of 80 basis points over Treasuries.
Home Depot sold $1.3 billion of 3% notes due April 1, 2026 at 99.356 to yield 3.074%, or 120 bps over Treasuries.
In the final tranche, the company placed a $350 million add-on to its 4.25% notes due April 1, 2046 at 100.602 to yield 4.214%. The long bonds priced with a spread of 150 bps over Treasuries. The company originally priced $1.25 billion of the notes in June 2015.
Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.
The company plans to use the proceeds to repay its outstanding 5.4% senior notes due March 1, 2016 and for general corporate purposes.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Amount: | $3 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | BNY Mellon Capital Markets, LLC; Citigroup Global Markets Inc.; Credit Suisse Securities (USA) LLC; Deutsche Bank Securities Inc.; Fifth Third Securities, Inc.; Mizuho Securities USA Inc.; Morgan Stanley & Co. LLC; RBC Capital Markets, LLC: SunTrust Robison Humphrey, Inc.; TD Securities (USA) LLC; Williams Capital Group, LP; U.S. Bancorp Investments, Inc.; Wells Fargo Securities, LLC; Lebenthal & Co., LLC
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | April 1, 2021
|
| Coupon: | 2%
|
| Price: | 99.644
|
| Yield: | 2.073%
|
| Spread: | 80 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 15 bps before March 1, 2021; on and after March 1, 2021 at par
|
|
|
| 10-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | April 1, 2026
|
| Coupon: | 3%
|
| Price: | 99.356
|
| Yield: | 3.074%
|
| Spread: | 120 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 20 bps before Jan. 1, 2026; on and after Jan. 1, 2026 at par
|
|
|
| 30-year notes
|
| Amount: | $350 million add-on
|
| Maturity: | April 1, 2046
|
| Coupon: | 4.25%
|
| Price: | 100.602 plus accrued interest from Oct. 1, 2015
|
| Yield: | 4.214%
|
| Spread: | 150 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 25 bps before Oct. 1, 2045; on and after Oct. 1, 2045 at par
|
| Original issue: | $1.25 billion issued June 2, 2015
|
| Total amount: | $1.6 billion
|
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