By Andrea Heisinger
New York, March 8 - Best Buy Co., Inc. sold $1 billion of senior notes (Baa2/BBB-/BBB+) in two tranches late on Tuesday, according to a source away from the deal.
The $350 million of 3.75% five-year notes priced at 99.606 to yield 3.837% with a spread of Treasuries plus 162.5 basis points. They have a make-whole call at 25 bps over Treasuries.
A $650 million tranche of 5.5% 10-year notes sold at 99.695 to yield 5.54% with a spread of 200 bps over Treasuries. The notes are callable at a make-whole amount of 30 bps over Treasuries.
Both tranches feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and UBS Securities LLC.
Proceeds are being used for general corporate purposes.
The electronics and entertainment retailer is based in Richfield, Minn.
| Issuer: | Best Buy Co., Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, UBS Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 8
|
| Settlement date: | March 11
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | March 15, 2016
|
| Coupon: | 3.75%
|
| Price: | 99.606
|
| Yield: | 3.837%
|
| Spread: | Treasuries plus 162.5 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2021
|
| Coupon: | 5.5%
|
| Price: | 99.695
|
| Yield: | 5.54%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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