Published on 9/6/2016 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $2 billion of 10- and 40-year senior notes
By Cristal Cody
Eureka Springs, Ark., Sept. 6 – Home Depot Inc. sold $2 billion in two tranches of senior notes (A2/A/A) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company placed $1 billion of 2.125% 10-year notes at 98.904 to yield 2.248%, or 70 basis points over Treasuries.
In the second tranche, Home Depot priced $1 billion of 3.5% 40-year notes at 98.097 to yield 3.59%. The notes priced with a spread of Treasuries plus 135 bps.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Home Depot, an Atlanta-based home improvement retailer, plans to use the proceeds for general corporate purposes.
| Issuer: | Home Depot Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., 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. 6
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 2.125%
|
| Price: | 98.904
|
| Yield: | 2.248%
|
| Spread: | Treasuries plus 70 bps
|
| Call feature: | Make-whole call before June 15, 2026 at Treasuries plus 15 bps; par call thereafter
|
|
|
| 40-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2056
|
| Coupon: | 3.5%
|
| Price: | 98.097
|
| Yield: | 3.59%
|
| Spread: | Treasuries plus 135 bps
|
| Call feature: | Make-whole call before March 15, 2056 at Treasuries plus 25 bps; par call thereafter
|
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