Published on 4/4/2019 in the Prospect News Investment Grade Daily.
New Issue: Lowe's details $3 billion of notes in two parts via four bookrunners
By Devika Patel
Knoxville, Tenn., April 4 – Lowe's Cos., Inc. offered further details about a $3 billion sale of notes (Baa1/BBB+) that priced in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
Lowe’s sold $1.5 billion of 3.65% 10-year notes at a spread of Treasuries plus 115 basis points., on the tight side of guidance in the Treasuries plus 120 bps area, plus or minus 5 bps. The notes priced at 99.859 to yield 3.667%.
The company sold $1.5 billion of 4.55% 30-year bonds with a spread of Treasuries plus 165 bps. Price guidance was in the Treasuries plus 170 bps area, plus or minus 5 bps. The tranche priced at 99.578 to yield 4.576%.
Barclays, Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to repay at maturity $600 million of 1.15% fixed-rate notes and 3.0273% floating-rate notes due April 15, 2019 and $450 million of 3.0206% floating-rate notes due Sept. 10, 2019 and for general corporate purposes.
The home improvement company is based in Mooresville, N.C.
| Issuer: | Lowe's Cos., Inc.
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| Amount: | $3 billion
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| Description: | Notes
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| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC and U.S. Bancorp Investments, Inc.
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| Senior co-managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA Inc. and RBC Capital Markets Corp.
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| Co-managers: | BB&T Capital Markets, MUFG, ANZ Securities, Inc. and BMO Capital Markets Corp.
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| Trade date: | April 3
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| Settlement date: | April 5
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Marketing: | Fixed income investor calls
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|
|
| Ten-year notes
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| Amount: | $1.5 billion
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| Maturity: | April 5, 2029
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| Coupon: | 3.65%
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| Price: | 99.859
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| Yield: | 3.667%
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| Spread: | Treasuries plus 115 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Jan. 5, 2029, then a par call
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| Price guidance: | Treasuries plus 120 bps area, plus or minus 5 bps; initial talk at Treasuries plus 137.5 bps area
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|
|
| Thirty-year notes
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| Amount: | $1.5 billion
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| Maturity: | April 5, 2049
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| Coupon: | 4.55%
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| Price: | 99.578
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| Yield: | 4.576%
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| Spread: | Treasuries plus 165 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 5, 2048, then a par call
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 5 bps; initial talk at Treasuries plus 187.5 bps area
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