Filed
Pursuant to Rule 433
Registration Statement No. 333-172662
Best
Buy Co., Inc.
Pricing Term Sheet
March 8, 2011
3.750% Notes due 2016
5.500% Notes due 2021
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Issuer: |
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Best Buy Co., Inc. |
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Title of Securities: |
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3.750% Notes due 2016 (the “2016 Notes”) |
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5.500% Notes due 2021 (the “2021 Notes” and, together |
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with the 2016 Notes, the “Notes”) |
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Type of Transaction: |
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SEC-Registered |
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Trade Date: |
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March 8, 2011 |
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Settlement Date: |
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T + 3: March 11, 2011 |
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Principal Amount: |
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2016 Notes: |
$350,000,000 |
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2021 Notes: |
$650,000,000 |
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Coupon (Interest Rate): |
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2016 Notes: |
3.750% per annum |
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2021 Notes: |
5.500% per annum |
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Maturity Date: |
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2016 Notes: |
March 15, 2016 |
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2021 Notes: |
March 15, 2021 |
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Price to Public (Issue Price): |
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2016 Notes: |
99.606% of principal amount |
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2021 Notes: |
99.695% of principal amount |
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Yield to Maturity: |
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2016 Notes: |
3.837% |
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2021 Notes: |
5.540% |
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Benchmark Treasury: |
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2016 Notes: |
UST 2.125% due 2/29/2016 |
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2021 Notes: |
UST 3.625% due 2/15/2021 |
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Benchmark Treasury Price and Yield: |
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2016 Notes: |
99-19 / 2.212% |
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2021 Notes: |
100-22+ / 3.540% |
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Spread to Benchmark Treasury: |
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2016 Notes: |
1.625% (162.5 basis points) |
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2021 Notes: |
2.000% (200 basis points) |
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Interest Payment Dates: |
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Semi-annually on March 15 and September 15 of each year, beginning on September 15, 2011 |
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Interest Payment Record Dates: |
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March 1 and September 1 of each year |
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Optional Redemption: |
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2016 Notes: |
At any time at T + 25 basis points |
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2021 Notes: |
Before
December 15, 2020 at T + 30 basis points; on or after |
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CUSIP / ISIN: |
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2016 Notes: |
086516 AK7 / US086516AK77 |
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2021 Notes: |
086516 AL5 / US086516AL50 |
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Expected Ratings: |
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Moody’s: Baa2 stable, S&P: BBB- stable, Fitch: BBB+ negative* |
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Joint Book-Running Managers: |
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Merrill Lynch, Pierce, Fenner & Smith Incorporated |
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Credit Suisse Securities (USA) LLC |
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J.P. Morgan Securities LLC |
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UBS Securities LLC |
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Senior Co-Managers: |
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Citigroup Global Markets Inc. |
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Wells Fargo Securities, LLC |
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Co-Managers: |
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Standard Chartered Bank |
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Fifth Third Securities, Inc. |
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Goldman, Sachs & Co. |
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HSBC Securities (USA) Inc. |
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Mitsubishi UFJ Securities (USA), Inc. |
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RBC Capital Markets, LLC |
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Scotia Capital (USA) Inc. |
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U.S. Bancorp Investments, Inc. |
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Barclays Capital Inc. |
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BBVA Securities Inc. |
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Deutsche Bank Securities Inc. |
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Morgan Stanley & Co. Incorporated |
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RBS Securities Inc. |
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*Note: A credit rating of a security is not a recommendation to buy, sell or hold such security and may be subject to review, revision, suspension, reduction or withdrawal at any
time by the assigning rating agency. Each of the ratings included herein should be evaluated independently of any other rating.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Merrill Lynch, Pierce, Fenner & Smith Incorporated at (800) 294-1322 (toll free), Credit Suisse Securities (USA) LLC at (800) 221-1037 (toll free), J.P. Morgan Securities LLC at (212) 834-4533 (collect) or UBS Securities LLC at (877) 827-6444 (extension 561-3884) (toll free).