Published on 3/26/2020 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $5 billion of senior notes in four tranches
By Cristal Cody
Tupelo, Miss., March 26 – Home Depot Inc. priced $5 billion of senior notes (A2/A) in four tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 2.5% seven-year notes at 99.513 to yield 2.576%, or a spread of Treasuries plus 190 basis points.
A $1.5 billion tranche of 2.7% 10-year notes came at 99.441 to yield 2.764%. The notes priced with a Treasuries plus 195 bps spread.
The company sold $1.25 billion of 3.3% 20-year notes at 99.114 to yield 3.361% and a Treasuries plus 195 bps spread.
A $1.5 billion tranche of 3.35% 30-year notes priced at 98.858 to yield 3.411%. The bonds were sold at a Treasuries plus 200 bps spread.
The seven-, 10- and 20-year notes were talked to print in the Treasuries plus 235 bps area, while the 30-year tranche was talked at the 245 bps spread area.
BofA Securities, Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and Goldman Sachs & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of the 3.95% notes due Sept. 15, 2020, the 1.8% notes due June 5, 2020 and the floating-rate notes due June 5, 2020, and repurchases of common stock.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Amount: | $5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and Goldman Sachs & Co. LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, Barclays and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | March 26
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 2.5%
|
| Price: | 99.513
|
| Yield: | 2.576%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call before Feb. 15, 2027 at Treasuries plus 30 bps; par thereafter
|
| Price guidance: | Treasuries plus 235 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2030
|
| Coupon: | 2.7%
|
| Price: | 99.441
|
| Yield: | 2.764%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Make-whole call before Jan. 15, 2030 at Treasuries plus 30 bps; par thereafter
|
| Price guidance: | Treasuries plus 235 bps area
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2040
|
| Coupon: | 3.3%
|
| Price: | 99.114
|
| Yield: | 3.361%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Make-whole call before Oct. 15, 2039 at Treasuries plus 30 bps; par thereafter
|
| Price guidance: | Treasuries plus 235 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2050
|
| Coupon: | 3.35%
|
| Price: | 98.858
|
| Yield: | 3.411%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call before Oct. 15, 2049 at Treasuries plus 30 bps; par thereafter
|
| Price guidance: | Treasuries plus 245 bps area
|
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