Skip to main content

Lowe’s funds Rona acquisition


Lowe's Companies Inc. is pricing a $3.3 billion notes offering, with an eye toward supporting a planned purchase of another home improvement retailer.

The retailer has agreed to sell $250 million of floating rate notes due 2019, $350 million of 1.15% notes due 2019, $1.35 billion of 2.5% notes due 2026 and $1.35 billion of 3.7% notes due 2046.

Lowe's plans to use the net proceeds from the sale of the notes to fund its planned $2.3 billion acquisition of Canadian home improvement retailer Rona Inc. The company will also use the net proceeds for the repayment of $1.025 billion in debt and other general corporate purposes.

Closing is expected to occur on April 20, 2016, subject to satisfaction of customary closing conditions. Wells Fargo Securities, Goldman, Sachs & Co., U.S. Bancorp Investments, CIBC World Markets Corp. and RBC Capital Markets are acting as joint book-running managers for the notes offering.

This ad will auto-close in 10 seconds