Summary
Lowe's Companies, Inc. (LOW) filed an 8-K on April 5, 2019, to disclose a significant debt issuance. The company raised approximately $2.97 billion in net proceeds by issuing $3.0 billion of unsecured senior notes. This issuance consists of two tranches: $1.5 billion of 3.650% Notes due in 2029 and $1.5 billion of 4.550% Notes due in 2049. These notes are unsecured and rank equally with existing unsecured senior indebtedness. The funds raised will bolster the company's liquidity and financial flexibility. The filing also details the terms of the notes, including interest rates, maturity dates, redemption provisions, and a provision for noteholders to demand repurchase at 101% of principal in the event of a Change of Control Triggering Event. Investors should note that these notes are new issues with no established trading market and are not intended to be listed on any securities exchange.
Key Highlights
- 1Lowe's issued $3.0 billion in unsecured senior notes on April 5, 2019.
- 2The proceeds raised amounted to approximately $2.97 billion after expenses.
- 3The notes are divided into two tranches: $1.5 billion of 3.650% Notes due in 2029 and $1.5 billion of 4.550% Notes due in 2049.
- 4The notes are unsecured obligations, ranking equally with other unsecured senior indebtedness.
- 5The company can redeem the notes under specific conditions prior to maturity, with a premium generally applied before the final three to six months.
- 6A Change of Control Triggering Event allows noteholders to require a repurchase of their notes at 101% of the principal amount plus accrued interest.
- 7These notes are new issues and are not listed on any securities exchange or quotation system.