Bloomberg: Lowe's Sells $5B in Bonds for Foundation Building Materials Buy

Lowe's Cos. has successfully issued $5 billion in bonds to fund its acquisition of Foundation Building Materials, according to Bloomberg.com. This bond sale stands out as one of the few buyout financings in the U.S. investment-grade market amidst a record month for overall bond issuance. The debt offering was structured into five tranches. The longest tranche, a 10-year security, was priced to yield 77 basis points above comparable U.S. Treasuries, according to an anonymous source familiar with the matter. Strong investor demand allowed Lowe's to secure favorable financing terms. The final pricing, which tightened by as much as 28 basis points from initial price discussions, indicates a positive market reception to the offering.