Home Depot secures $10 billion credit facility

Home Depot has announced a group of lenders has agreed to provide the company with a $10 billion credit facility, in connection with the company’s plan to repurchase up to 250 million shares of its common stock.

Lenders include Lehman Brothers, Commercial Paper Inc., Merrill Lynch, Capital Corp. and others. The credit facility will mature on Nov. 21, the company said.

Following the June announcement of the $10 billion sale of Home Depot’s HD Supply business, the company announced a $22.5 billion share repurchase program. As part of the plan, Home Depot’s board of directors authorized a self-tender offer for the purchase of up to 250 million shares of the company's common stock.

"The two key areas of focus for our capital allocation strategy are to invest in our core retail stores and to return capital to our shareholders," said Frank Blake, chairman and CEO of Home Depot. "Despite a challenging housing environment, we remain committed to both, and [the] tender launch is a clear demonstration of our commitment to returning cash to shareholders."