Lowe's prices $1 billion of debt, to pay off June notes

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Lowe's Companies Inc said on Monday that it will sell $1 billion of debt in two parts and will use slightly more than half of the net proceeds to pay off notes coming due in June.

The sale will include $500 million of notes coming due in 2020 priced to yield 80 basis points over comparable U.S. Treasuries and another $500 million of bonds priced to yield 110 basis points more than U.S. Treasuries and coming due in 2040. The transaction is expected to close on Thursday.

The U.S. home improvement chain said it expects net proceeds of about $990.7 million from the debt sale and will use about $500 million of that amount to pay back notes coming due on June 1, 2010.

The joint lead managers on the sale were Bank of America Merrill Lynch , JP Morgan and SunTrust Robinson Humphrey & Co Inc.

(Reporting by Caryn Trokie and Phil Wahba; Editing by Dan Grebler, Phil Berlowitz)

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