Lowe’s prices tender offer for $1.6 billion of 10 note series

By Wendy Van Sickle

Columbus, Ohio, May 3 – Lowe's Cos., Inc. announced pricing for its capped tender offer for 10 note series Wednesday evening.

The company had earlier in the day given the early results of the tender offer as of 5 p.m. ET on May 2, the early tender date.

The company said on April 19 that it is tendering for up to $1.6 billion principal amount of the notes until 11:59 p.m. ET on May 16.

The notes covered by the tender are the company’s $100 million 7.11% notes due 2037, $500 million 6.65% notes due 2037, $450 million 5.8% notes due 2036, $500 million 5.5% notes due 2035, $500 million 5.8% notes due 2040, $500 million 5.125% notes due 2041, $500 million 5% notes due 2043, $300 million 6.875% notes due 2028, $400 million 6.5% notes due 2029 and $500 million 4.625% notes due 2020.

The early tender results and pricing are as follows, with the notes listed in order of priority acceptance level and total considerations per $1,000 principal amount set at 11 a.m. ET on May 3 using a reference security plus a fixed spread:

• $59.18 million of the $100 million 7.11% notes due 2037, with a total consideration of $1,459.41 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 85 basis points;

• $270.04 million of the $500 million 6.65% notes due 2037, with a total consideration of $1,399.72 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 85 bps;

• $159,894,000 of the $450 million 5.8% notes due 2036, with a total consideration of $1,271.58 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 85 bps;

• $156,085,000 of the $500 million 5.5% notes due 2035, with a total consideration of $1,229.97 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 80 bps;

• $270,092,000 of the $500 million 5.8% notes due 2040, with a total consideration of $1,289.51 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 90 bps;

• $347,865,000 of the $500 million 5.125% notes due 2041, with a total consideration of $1,196.94 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 90 bps;

• $203,049,000 of the $500 million 5% notes due 2043, with a total consideration of $1,185.42 set using the 2.875% U.S. Treasury due Nov. 15, 2046 plus 90 bps;

• $44,522,000 of the $300 million 6.875% notes due 2028, with a total consideration of $1,344.19 set using the 2.25% U.S. Treasury due Feb. 15, 2027 plus 80 bps;

• $134,054,000 of the $400 million 6.5% notes due 2029, with a total consideration of $1,355.91 set using the 2.25% U.S. Treasury due Feb. 15, 2027 plus 80 bps; and

• $218,587,000 of the $500 million 4.625% notes due 2020, with a total consideration of $1,071.88 set using the 1.5% U.S. Treasury due April 15, 2020 plus 15 bps.

The total purchase considerations include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline.

Holders also will receive accrued interest to but excluding the settlement date of May 4 for early tenders and May 17 for any remaining tenders.

Tenders may no longer be withdrawn as of the early deadline.

The offers include a financing condition.

BofA Merrill Lynch (980 387-3907 or 888 292-0070) and J.P. Morgan Securities LLC (212 834-3833 or 866 834-4666) are the lead dealer managers. Goldman Sachs & Co., Inc. and U.S. Bancorp Investments, Inc. are the co-dealer managers. The information agent and tender agent is D.F. King & Co., Inc. (866 721-1211, 212 269-5550 or lowes@dfking.com).

Lowe's is a home improvement company based in Mooresville, N.C.

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