Published on 9/7/2010 in the Prospect News Investment Grade Daily.
New Issue: Home Depot sells $1 billion of notes in 10-, 30-year tranches
By Andrea Heisinger
New York, Sept. 7 - Home Depot, Inc. sold $1 billion of notes (Baa1/BBB+/BBB+) in two tranches on Tuesday, a market source away from the sale said.
A $500 million tranche of 3.95% 10-year notes priced at 99.868 to yield 3.966% with a spread of Treasuries plus 135 basis points. The notes are callable at a make-whole amount of Treasuries plus 20 bps before June 15, 2020 and then at par until maturity after that date.
The second tranche of $500 million 5.4% 30-year bonds priced at 99.704 to yield 5.42% with a spread of Treasuries plus 175 bps. The bonds have a make-whole call at Treasuries plus 25 bps before March 15, 2030 and then at par until maturity after that date.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.
Goldman Sachs & Co., Wells Fargo Securities, LLC, Barclays Capital Inc., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., RBC Capital Markets Corp., RBS Securities Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Williams Capital Group, LP and Citigroup Global Markets Inc. were the co-managers.
Proceeds will be used for the replacement of cash funds used to repay $1 billion of 4.625% notes that matured on Aug. 15.
The company does not have any recent outstanding bonds for comparison. A source said the company have not sold bonds since late 2006.
The home improvement retailer is based in Atlanta.
| Issuer: | Home Depot, Inc.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
|
| Co-managers: | Goldman, Sachs & Co., Wells Fargo Securities, LLC, Barclays Capital Inc., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., RBC Capital Markets Corp., RBS Securities Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Williams Capital Group, LP, Citigroup Global Markets Inc.
|
| Trade date: | Sept. 7
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2020
|
| Coupon: | 3.95%
|
| Price: | 99.868
|
| Yield: | 3.966%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps before June 15, 2020, then at par until maturity
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2040
|
| Coupon: | 5.4%
|
| Price: | 99.704
|
| Yield: | 5.42%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps before March 15, 2040, then at par until maturity
|
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