New Issue: HD Supply prices $1.25 billion seven-year notes at par to yield 5¼%

By Paul A. Harris

Portland, Ore., Nov. 19 – HD Supply, Inc., a wholly owned subsidiary of HD Supply Holdings, Inc., priced a $1.25 billion issue of senior secured first-priority notes due 2021 (B1/B+/) at par to yield 5¼% on Wednesday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 5 3/8% area.

BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC were the joint bookrunners.

The Atlanta-based company plans to use the proceeds to refinance its outstanding 8⅛% senior secured first-priority notes due 2019.

HD Supply is a wholesale distributor for the infrastructure and energy, maintenance, repair and improvement and specialty construction sectors.

Issuer:	HD Supply, Inc.
Amount:	$1.25 billion
Maturity:	Dec. 15, 2021
Securities:	Senior secured first-priority notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Barclays, J.P. Morgan Securities LLC, Goldman Sachs & Co., Wells Fargo Securities
Co-managers:	Robert W. Baird & Co. Inc., BB&T Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Raymond James & Associates Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Spread:	323 bps
First call:	Dec. 15, 2017 at 103.938
Trade date:	Nov. 19
Settlement date:	Dec. 4
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S
Price talk:	5 3/8% area
Marketing:	Quick to market

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