Summary
On March 31, 2021, Lowe's Companies, Inc. completed a significant debt financing, issuing $2.0 billion in aggregate principal amount of unsecured notes. This issuance comprises $1.5 billion of 2.625% Notes due April 1, 2031, and $500 million of 3.500% Notes due April 1, 2051. The net proceeds received by the company were approximately $1.985 billion after accounting for expenses and underwriting discounts. This debt issuance represents an effort by Lowe's to bolster its financial flexibility. The notes are unsecured and rank equally with existing unsecured senior indebtedness. While the indenture restricts subsidiaries from issuing debt, it does not limit the company's ability to incur additional indebtedness. Investors should note that these notes are new issues with no established trading market and are not intended for listing on any securities exchange.
Key Highlights
- 1Lowe's issued $2.0 billion in unsecured notes: $1.5 billion of 2.625% Notes due 2031 and $500 million of 3.500% Notes due 2051.
- 2Net proceeds of approximately $1.985 billion were raised from the note issuance.
- 3The notes are unsecured obligations, ranking equally with existing and future unsecured senior indebtedness.
- 4The indenture includes covenants that restrict debt issuance by subsidiaries but not by the parent company.
- 5The new notes have no established trading market and are not intended for listing on exchanges.
- 6The company has the option to redeem the notes prior to maturity under specified conditions, including at par plus accrued interest within a certain period before maturity.
- 7A 'Change of Control Triggering Event' may allow noteholders to require the company to repurchase their notes at 101% of the principal amount, plus accrued interest.