HD Supply subsidiary redeems $1.23 billion 7½% notes in full at 103.75

By Angela McDaniels

Tacoma, Wash., Oct. 17 – HD Supply Holdings, Inc. subsidiary HD Supply, Inc. redeemed all of its outstanding $1,275,000,000 7½% senior notes due 2020 on Oct. 17, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price was 103.75% of par plus accrued interest. The call premium for the notes totaled about $47.8 million.

The notes were canceled.

The subsidiary used a $550 million incremental term loan B, a $600 million ABL revolver draw and $228 million of cash on hand to fund the redemption.

The company expects its future interest expense to be reduced by about $65 million annually, and its ratio of net debt to adjusted EBITDA is 4.5 times as of July 31 as adjusted for the redemption of the notes.

HD Supply is an industrial distributor based in Atlanta.

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