Home Depot Inc. is offering $1 billion of 2.950% notes due June 15, 2029, and $400 million of 3.900% notes due June 15, 2047, according to a prospectus filed June 3.
The U.S. home improvement retailer said it intends to use the net proceeds of the offering to repay its 2.00% notes due June 15 and for general corporate purposes, including repurchases of common stock, working capital, capital expenditures and acquisitions or investments.
Interest on the two series of notes will be paid every June 15 and Dec. 15 of each year, starting Dec. 15, with interest on the 2047 notes accruing from June 15. The notes are expected to settle June 17.
Home Depot said it has the option to redeem the notes. The notes will be unsecured senior obligations of the company and will rank equally with Home Depot's existing and future unsecured and unsubordinated indebtedness.
Barclays Capital Inc., BofA Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering, while BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, The Williams Capital Group LP, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Samuel A. Ramirez & Co. Inc. are serving as co-managers.
S&P Global Ratings and Moody's assigned an A2/A rating to the 2047 notes, while the 2029 notes are also expected to be assigned the same ratings.