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Lowe's announces $1B debt offering

MOORESVILLE, N.C. (AP) -- Lowe's Companies Inc. said Wednesday that it is planning a $1 billion debt offering.

The home improvement company has agreed to sell $500 million worth of 3.875 percent notes due in 2023 and $500 million in 5 percent notes due in 2043.

Lowe's anticipates total proceeds of $984 million, which it says it will use for general corporate purposes.

Merrill Lynch, Pierce, Fenner & Smith Inc.; J.P. Morgan Securities LLC; and SunTrust Robinson Humphrey Inc. are acting as joint book-running managers for the offering.

Lowe's reported last month that its quarterly net income rose 26 percent in the most recent period as Americans began to feel good again about sprucing up their homes and bought more. The company, based in Mooresville, N.C., had 1,758 stores across North America as of the end of the second quarter.

Lowe's also closed on its $205 million acquisition of 72 Orchard Supply Hardware Stores out of bankruptcy last month.

Shares added 36 cents to close at $45.97 and were unchanged in after-hours trading following the announcement.