Summary
The Home Depot, Inc. (HD) filed an 8-K on January 7, 2020, to announce the details of a significant debt offering. The company entered into an Underwriting Agreement to issue $750 million in 2.950% Notes due June 15, 2029, and $1.25 billion in 3.125% Notes due December 15, 2049, totaling $2 billion in aggregate principal amount. This offering, made under a previously established shelf registration statement, provides Home Depot with additional capital. Investors should note that the offering is subject to customary closing conditions and is expected to close on January 13, 2020. The Underwriting Agreement contains standard provisions including representations, warranties, covenants, indemnification, and contribution clauses.
Key Highlights
- 1Home Depot is raising $2 billion in new debt.
- 2The debt offering consists of two tranches: $750 million of 2.950% Notes due 2029 and $1.25 billion of 3.125% Notes due 2049.
- 3The offering is being conducted under the company's existing shelf registration statement.
- 4The Underwriting Agreement was executed on January 6, 2020, with major investment banks including BofA Securities, Credit Suisse, Goldman Sachs, and J.P. Morgan as underwriters.
- 5The transaction is expected to close on January 13, 2020, subject to standard closing conditions.
- 6The Underwriting Agreement includes customary legal provisions for such debt offerings, such as representations, warranties, covenants, and indemnification.