Home Depot Plans First Bond Offering Since 2006 to Replace Repayment Cash
Home Depot Inc. plans to sell debt for the first time since 2006 to replace cash funds used to repay notes that matured last month.
The largest U.S. home-improvement retailer may issue $1 billion of notes as soon as today, according to a person familiar with the transaction, who declined to be identified because terms aren’t set. Home Depot plans to sell 10- and 30- year bonds to replace cash used to repay 4.625 percent senior notes that matured Aug. 15, the Atlanta-based company said today in a regulatory filing that didn’t specify the size or timing of the sale.
The retailer is marketing debt as borrowing costs for investment-grade companies fall to record lows. Yields on investment-grade debt fell to 3.911 percent yesterday, according to Bank of America Merrill Lynch’s U.S. Corporate Master index, near the record 3.74 percent on Aug. 24, the lowest in the measure’s history dating to October 1986.
Home Depot last sold debt in December 2006, issuing $5 billion of bonds to finance the repurchase of shares, according to data compiled by Bloomberg.
To contact the reporter on this story: Sapna Maheshwari in New York at sapnam@bloomberg.net
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