New Issue: HD Supply prices $750 million eight-year notes at par to yield 5 3/8%

By Paul A. Harris

Portland, Ore., Oct. 1 – HD Supply Holdings, Inc. priced a $750 million issue of eight-year senior notes (Ba3/BB-) at par to yield 5 3/8% in a quick-to-market Monday trade, according to market sources.

The yield printed at the tight end of the 5 3/8% to 5½% yield talk. Initial price talk was in the mid-to-high 5% area.

The deal was playing to $1.25 billion of orders around noon ET on Monday, a trader said.

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

The Atlanta-based industrial supplies distributor plans to use the proceeds, together with available cash and borrowings under its senior ABL facility, to redeem all $1 billion of its outstanding 5¾% senior notes due 2024.

Issuer:	HD Supply, Inc.
Amount:	$750 million
Maturity:	Oct. 15, 2026
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
Co-managers:	BNP Paribas Securities Corp., Capital One Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities, Regions, TD Securities (USA) LLC, U.S. Bancorp Investments Inc.
Coupon:	5 3/8%
Price:	Par
Yield:	5 3/8%
Spread:	232 bps
First call date:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2021, then callable at a premium
Trade date:	Oct. 1
Settlement date:	Oct. 11
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	Rule 144A for life
Price talk:	5 3/8% to 5½%
Marketing:	Quick to market

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