New Issue: Home Depot prices $2 billion of notes due 2025, 2026, 2029

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, Nov. 27 – Home Depot Inc. priced a combined $2 billion of fixed-rate notes (A2/A/A) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission and additional details from a market source.

The offering included $500 million of 5.125% notes due April 30, 2025 priced at 99.935 to yield 5.177%, or 28 basis points over Treasuries. Price talk was in the Treasuries plus 55 bps area.

The issuer also sold $750 million of 4.95% notes due Sept. 30, 2026 to yield 43 bps over Treasuries versus talk in the 70 bps area. The notes priced at 99.781 to yield 5.037%.

Finally, the company sold $750 million of 4.9% notes due April 15, 2029 to yield 58 bps over Treasuries versus talk in the 85 bps area. The notes priced at 9.55 to yield 4.998%.

Noteholders will be able to exercise put rights at 101 plus interest if a change of control occurs.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and U.S. Bancorp Investments, Inc. are the joint bookrunning managers for the offering.

The proceeds will be used to repay the company’s 3.75% senior notes due Feb. 15, 2024 and for share repurchases, subject to market conditions and other business considerations.

Atlanta-based Home Depot is a home improvement retailer.

Issuer:	Home Depot Inc.
Amount:	$2 billion
Issue:	Notes
Bookrunners:	BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and U.S. Bancorp Investments, Inc.
Co-managers:	BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, Siebert Williams Shank & Co. LLC, TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
Trustee:	Deutsche Bank Trust Co. Americas
Counsel to issuer:	Alston & Bird LLP
Counsel to underwriters:	Davis Polk & Wardwell LLP
Put:	At 101 plus interest for a change of control
Pricing date:	Nov. 27
Settlement date:	Dec. 4
Ratings:	Moody’s: A2
	S&P: A
	Fitch: A
Distribution:	SEC registered
Notes due 2025
Amount:	$500 million
Maturity:	April 30, 2025
Coupon:	5.125%
Price:	99.935
Yield:	5.177%
Spread:	28 bps over Treasuries
Call:	Make-whole call at Treasuries plus 5 bps
Price talk:	Treasuries plus 55 bps area
Cusip:	437076CU4
Notes due 2026
Amount:	$750 million
Maturity:	Sept. 30, 2026
Coupon:	4.95%
Price:	99.781
Yield:	5.037%
Spread:	43 bps over Treasuries
Call:	Make-whole call at Treasuries plus 10 bps prior to Aug. 30, 2026, then callable at par thereafter
Price talk:	Treasuries plus 70 bps area
Cusip:	437076CV2
Notes due 2029
Amount:	$750 million
Maturity:	April 15, 2029
Coupon:	4.9%
Price:	9.55
Yield:	4.998%
Spread:	58 bps over Treasuries
Call:	Make-whole call at Treasuries plus 10 bps prior to March 15, 2029, then callable at par thereafter
Price talk:	Treasuries plus 85 bps area
Cusip:	437076CW0

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