By Cristal Cody
Tupelo, Miss., March 24 – Lowe's Cos., Inc. priced $4 billion of notes (Baa1/BBB+) in four tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 4% five-year notes at 99.771 to yield 4.05%, or a spread of 355 basis points over Treasuries.
Initial price talk was in the 380 bps spread area.
A $1.25 billion tranche of 4.5% 10-year notes priced at 99.518 to yield 4.56% and a spread of Treasuries plus 375 bps., compared to talk in the 400 bps area.
The company sold $750 million of 5% 20-year bonds at 99.533 to yield 5.037%. The notes priced with a spread of Treasuries plus 360 bps. Price guidance was in the Treasuries plus 400 bps area.
Finally, $1.25 billion of 30-year notes priced at 99.814 to yield 5.137%. The notes priced at a spread of 370 bps over Treasuries.
The bonds were talked to print in the 410 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.
The Mooresville, N.C.-based home improvement company will use the proceeds to repay at maturity its $500 million of 4.625% notes due April 15, 2020 and for general corporate purposes.
| Issuer: | Lowe's Cos., Inc.
|
| Amount: | $4 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Senior co-managers: | Barclays, Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Mizuho Securities USA LLC
|
| Co-managers: | MUFG, SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., Loop Capital Markets LLC and Mischler Financial Group, Inc.
|
| Trade date: | March 24
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 4%
|
| Price: | 99.771
|
| Yield: | 4.05%
|
| Spread: | Treasuries plus 355 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 50 bps before one month prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 380 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2030
|
| Coupon: | 4.5%
|
| Price: | 99.518
|
| Yield: | 4.56%
|
| Spread: | Treasuries plus 375 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 50 bps before three months prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 400 bps area
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2040
|
| Coupon: | 5%
|
| Price: | 99.533
|
| Yield: | 5.037%
|
| Spread: | Treasuries plus 360 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 50 bps before six months prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 400 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2050
|
| Coupon: | 5.125%
|
| Price: | 99.814
|
| Yield: | 5.137%
|
| Spread: | Treasuries plus 370 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 50 bps before six months prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 410 bps area
|
© 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.
