The Home Depot, Inc. (HD, Financial), a leading home improvement retailer, has announced significant changes to its credit facilities as part of its ongoing financial strategy. On December 18, 2024, the company terminated its $1.0 billion three-year revolving credit facility, initially established on May 7, 2024. This decision was made after determining that the facility was no longer necessary for the company's financial operations. Notably, there were no borrowings under this credit facility.
In addition to terminating the three-year credit facility, The Home Depot also reduced the commitments under its $3.5 billion 364-day revolving credit facility to $2.0 billion. This adjustment aligns with the company's strategic financial planning and reflects its current borrowing needs. The 364-day credit facility, like the terminated three-year facility, had no borrowings at the time of the adjustment.
These changes come in the wake of The Home Depot's acquisition of SRS Distribution Inc., which was completed on June 18, 2024. The credit facilities were initially established to support the company's expanded commercial paper program and general corporate purposes related to this acquisition.
Following these adjustments, The Home Depot's commercial paper program remains robust, allowing for borrowings up to $7.0 billion, supported by $7.0 billion in revolving credit facilities. This strategic move underscores The Home Depot's commitment to maintaining a flexible and efficient capital structure, ensuring the company is well-positioned to meet its financial obligations and pursue future growth opportunities.
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