Published on 6/3/2019 in the Prospect News Investment Grade Daily.
New Issue: Home Depot prices $1.4 billion of new, reopened senior notes in two tranches
By Cristal Cody
Tupelo, Miss., June 3 – Home Depot Inc. priced $1.4 billion of senior notes (A2/A) in new and reopened tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
Home Depot priced $1 billion of 2.95% 10-year notes at 99.426 to yield 3.017% and a spread of Treasuries plus 93 basis points.
The company also priced a $400 million add-on to its 3.9% notes due June 15, 2047 at 102.542 to yield 3.751%, or a Treasuries plus 120 bps spread.
The notes originally priced in a $750 million offering on May 24, 2017 at 99.316 to yield 3.939%, or a Treasuries plus 100 bps spread. The total outstanding is now $1.15 billion.
Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to repay the company’s 2% notes due June 15, 2019 and for general corporate purposes.
Home Depot is an Atlanta-based home improvement retailer.
| Issuer: | Home Depot Inc.
|
| Amount: | $1.4 billion
|
| Description: | Senior notes
|
| Maturity: | June 15, 2029
|
| Bookrunners: | Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA 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.
|
| Trade date: | June 3
|
| Settlement date: | June 17
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2029
|
| Coupon: | 2.95%
|
| Price: | 99.426
|
| Yield: | 3.017%
|
| Spread: | Treasuries plus 93 bps
|
| Call feature: | Make-whole call before March 15, 2029 at Treasuries plus 15 bps; at par thereafter
|
|
|
| Reopened notes
|
| Amount: | $400 million reopening
|
| Maturity: | June 15, 2047
|
| Coupon: | 3.9%
|
| Price: | 102.542
|
| Yield: | 3.751%
|
| Spread: | Treasuries plus 120 bps
|
| Call feature: | Make-whole call before Dec. 15, 2046 at Treasuries plus 15 bps; par call thereafter
|
| Total outstanding: | $1.15 billion, including $750 million of notes priced May 24, 2017 at 99.316 to yield 3.939%, or a Treasuries plus 100 bps spread
|
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