Sept. 3 (Bloomberg) -- Home Depot Inc., the property-improvement retailer, sold $3.25 billion of notes to refinance debt and buy back stock with its biggest bond offering in almost seven years.
The company issued $1.15 billion of 2.25 percent securities due in 2018 that pay 60 basis points more than similar-maturity Treasuries, $1.1 billion of 3.75 percent bonds maturing in 2024 with a spread of 95 basis points, and $1 billion of 4.875 percent debt due in 2044 that pays 115 more than benchmarks, according to data compiled by Bloomberg.
Proceeds may be used to repay its $1.25 billion of 5.25 percent securities maturing Dec. 16 and repurchase stock that’s surged about 20 percent this year, Atlanta-based Home Depot said today in a regulatory filing. The issue is the company’s largest since a $5 billion bond sale in December 2006.
Its $1 billion of 4.2 percent bonds due 2043, which were issued in April to yield 110 basis points more than Treasuries, have declined to 92.8 cents on the dollar to yield 4.65 percent last week, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The new securities are ranked A- at Standard & Poor’s.
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