New Issue: Home Depot prices $3.5 billion of senior notes in four tranches

By Cristal Cody

Tupelo, Miss., Nov. 27 – Home Depot Inc. priced $3.5 billion of senior notes (A2/A) in four tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

A $300 million tranche of floating-rate notes due March 1, 2022 priced at par to yield Libor plus 31 basis points.

Home Depot placed $700 million of 3.25% long three-year fixed-rate notes at 99.726 to yield 3.341% and a spread of Treasuries plus 48 bps.

In a 10-year tranche, $1 billion of 3.9% notes priced at 99.313 to yield 3.984%. The notes priced with a spread of Treasuries plus 93 bps.

The company also sold $1.5 billion of 4.5% 30-year notes at 98.302 to yield 4.605%, or Treasuries plus 128 bps.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners on all tranches.

Proceeds will be used for general corporate purposes, including repurchases of stock.

Home Depot is an Atlanta-based home improvement retailer.

Issuer:	Home Depot Inc.
Amount:	$3.5 billion
Description:	Senior notes
Trade date:	Nov. 27
Settlement date:	Dec. 6
Ratings:	Moody’s: A2
	S&P: A
Distribution:	SEC registered
Three-year floaters
Amount:	$300 million
Maturity:	March 1, 2022
Description:	Floating-rate notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch
Co-managers:	Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
Coupon:	Libor plus 31 bps
Price:	Par
Yield:	Libor plus 31 bps
Call feature:	None
Three-year notes
Amount:	$700 million
Maturity:	March 1, 2022
Description:	Fixed-rate notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch
Co-managers:	Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
Coupon:	3.25%
Price:	99.726
Yield:	3.341%
Spread:	Treasuries plus 48 bps
Call feature:	Make-whole call at Treasuries plus 10 bps
10-year notes
Amount:	$1 billion
Maturity:	Dec. 6, 2028
Description:	Fixed-rate notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch
Co-managers:	Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
Coupon:	3.9%
Price:	99.313
Yield:	3.984%
Spread:	Treasuries plus 93 bps
Call feature:	Make-whole call at Treasuries plus 15 bps before Sept. 6, 2028; thereafter at par
30-year notes
Amount:	$1.5 billion
Maturity:	Dec. 6, 2048
Description:	Fixed-rate notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch
Co-managers:	Barclays, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
Coupon:	4.5%
Price:	98.302
Yield:	4.605%
Spread:	Treasuries plus 128 bps
Call feature:	Make-whole call at Treasuries plus 20 bps before June 6, 2048; thereafter at par

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