Published on 9/7/2021 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $3 billion of seven-, 10- and 30-year notes
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Sept. 7 – Home Depot Inc. priced a combined $3 billion of notes (A2/A/A) in three tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The offering included $1 billion of 1.5% seven-year notes priced at 99.598 to yield 1.561%, or 42 basis points over Treasuries. These notes were talked at a 65 bps area spread, according to a market source.
Home Depot sold $1 billion of 1.875% 10-year notes to yield 57 bps over Treasuries, compared to talk in the 80 bps area over Treasuries. The notes priced at 99.368 to yield 1.945%.
The issuer also sold $1 billion of 2.75% 30-year notes to yield 82 bps over Treasuries, versus talk in the 105 bps area over Treasuries. The notes priced at 98.93 to yield 2.803%.
Bookrunners were BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc.
Proceeds will be used for general corporate purposes, including repurchases of shares of common stock, subject to market conditions and other business considerations.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Siebert Williams Shank & Co., LLC, TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2028
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2028
|
| Coupon: | 1.5%
|
| Price: | 99.598
|
| Yield: | 1.561%
|
| Spread: | 42 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 10 bps until July 15, 2028; par call thereafter
|
| Talk | 65 bps area over Treasuries
|
| Cusip: | 437076CH3
|
|
|
| Notes due 2031
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| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2031
|
| Coupon: | 1.875%
|
| Price: | 99.368
|
| Yield: | 1.945%
|
| Spread: | 57 bps over Treasuries
|
| Call: | Make-whole call at 10 bps over Treasuries until June 15, 2031; par call thereafter
|
| Talk: | 80 bps area over Treasuries
|
| Cusip: | 437076CJ9
|
|
|
| Notes due 2051
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| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2051
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| Coupon: | 2.75%
|
| Price: | 98.93
|
| Yield: | 2.803%
|
| Spread: | 82 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 15 bps until March 15, 2051; par call thereafter
|
| Talk: | 105 bps area over Treasuries
|
| Cusip: | 437076CK6
|
|
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