By Andrea Heisinger
New York, Nov. 16 - Lowe's Cos. Inc. sold $1 billion of senior notes (A3/A-/) in two tranches on Wednesday, a market source said.
The $500 million of 3.8% 10-year notes priced at 99.927 to yield 3.809% with a spread of Treasuries plus 180 basis points.
The tranche has a make-whole call at Treasuries plus 30 bps until Aug. 15, 2021 and can be redeemed after that date at par.
The $500 million tranche of 5.125% 30-year bonds priced at 99.94 to yield 5.129% with a spread of 210 bps over Treasuries. They have a make-whole call at 35 bps over Treasuries until May 15, 2041 and can be called after that date at par.
Both tranches feature a change-of-control put at 101%.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Co-managers were Goldman Sachs & Co., U.S. Bancorp Investments, Inc., Wells Fargo Securities LLC, BB&T Capital Markets, BMO Capital Markets Corp., PNC Capital Markets LLC, RBS Securities Inc., BNY Mellon Capital Markets, LLC, ANZ Securities, Inc. and Williams Capital Group LP.
Proceeds will be used for general corporate purposes, including a common stock share repurchase, capital expenditures and working capital.
Lowe's last priced debt in a $1 billion sale of five- and 10-year notes on Nov. 17, 2010. The 3.75% 10-year notes from that sale were priced at 88 bps over Treasuries.
The home improvement retailer is based in Mooresville, N.C.
| Issuer: | Lowe's Cos. Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Goldman Sachs & Co., U.S. Bancorp Investments, Inc., Wells Fargo Securities LLC, BB&T Capital Markets, BMO Capital Markets Corp., PNC Capital Markets LLC, RBS Securities Inc., BNY Mellon Capital Markets, LLC, ANZ Securities, Inc., Williams Capital Group LP
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2021
|
| Coupon: | 3.8%
|
| Price: | 99.927
|
| Yield: | 3.809%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Aug. 15, 2021, after at par
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2041
|
| Coupon: | 5.125%
|
| Price: | 99.94
|
| Yield: | 5.129%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until May 15, 2041, after 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.
