HD Supply Announces Senior Secured Notes Offering

HD Supply intends to use the estimated $1,850 million from the sales to refinance its 12.0% Senior Cash Pay Notes due 2014.

Atlanta, GA - HD Supply, Inc. today announced that it intends to commence a private offering of Senior Secured First Priority Notes due 2019 (the “First Priority Notes”) and Senior Secured Second Priority Notes due 2020 (the “Second Priority Notes” and together with the First Priority Notes, the “Notes”). HD Supply also intends to concurrently refinance its ABL credit facility and senior secured term loan facility. There can be no assurance that the private offering of Notes or the other financings will be completed.

In addition to refinancing its ABL credit facility and senior secured term loan facility, HD Supply intends to use the estimated $1,850 million of aggregate proceeds from the sale of the First Priority Notes and first lien term loan borrowings under new credit facilities together with borrowings under a new ABL credit facility, the estimated $775 million of proceeds from the sale of the Second Priority Notes and the incurrence of other indebtedness to refinance its 12.0% Senior Cash Pay Notes due 2014.

The notes will be offered in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended. The notes will be offered only to qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act.

The notes will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

More in Home