Published on 3/22/2022 in the Prospect News Investment Grade Daily.
New Issue: Lowe’s prices $5 billion four-tranche offering of fixed-rate notes
By Wendy Van Sickle
Columbus, Ohio, March 22 – Lowe's Cos., Inc. priced $5 billion of notes (Baa1/BBB+) in four tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 3.35% notes due April 1, 2027 at 99.926 to yield 3.366%, or a spread of 97 basis points over Treasuries.
A $1.5 billion tranche of 3.75% 10-year notes priced at 99.983 to yield 3.752% and a spread of Treasuries plus 138 bps.
Lowe’s priced $1.5 billion of 4.25% 30-year bonds at 99.932 to yield 4.254%. The notes came with a spread of Treasuries plus 163 bps.
Finally, the company sold $1.25 billion of 4.45% 40-year notes at 99.925 to yield 4.454%, or a spread of Treasuries plus 183 bps.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Lowe’s is a home improvement company based in Mooresville, N.C.
| Issuer: | Lowe's Cos., Inc.
|
| Amount: | $5 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Senior co-managers: | Barclays, Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC, U.S. Bancorp Investments, Inc. and Mizuho Securities USA LLC
|
| Co-managers: | MUFG, Truist Securities, Inc., BMO Capital Markets Corp., Loop Capital Markets LLC and Mischler Financial Group, Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and Moore & Van Allen PLLC
|
| Counsel to underwriters: | Shearman & Sterling LLP
|
| Trade date: | March 22
|
| Settlement date: | March 24
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2027
|
| Amount: | $750 million
|
| Maturity: | April 1, 2027
|
| Coupon: | 3.35%
|
| Price: | 99.926
|
| Yield: | 3.366%
|
| Spread: | Treasuries plus 97 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps before one month prior to maturity; thereafter at par
|
| Cusip: | 548661EG8
|
|
|
| Notes due 2032
|
| Amount: | $1.5 billion
|
| Maturity: | April 1, 2032
|
| Coupon: | 3.75%
|
| Price: | 99.983
|
| Yield: | 3.752%
|
| Spread: | Treasuries plus 138 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 25 bps before three months prior to maturity; thereafter at par
|
| Cusip: | 548661EH6
|
|
|
| Notes due 2052
|
| Amount: | $1.5 billion
|
| Maturity: | April 1, 2052
|
| Coupon: | 4.25%
|
| Price: | 99.932
|
| Yield: | 4.254%
|
| Spread: | Treasuries plus 163 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 25 bps before six months prior to maturity; thereafter at par
|
| Cusip: | 548661EJ2
|
|
|
| Notes due 2062
|
| Amount: | $1.25 billion
|
| Maturity: | April 1, 2062
|
| Coupon: | 4.45%
|
| Price: | 99.925
|
| Yield: | 4.454%
|
| Spread: | Treasuries plus 183 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 30 bps before six months prior to maturity; thereafter at par
|
| Cusip: | 548661EF0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
