In a significant financial move dated May 6, 2025, The Home Depot, Inc. (NYSE: HD) terminated its \(2 billion 364-day revolving credit facility established in May 2024 and entered into two new revolving credit facility agreements totaling \)7 billion in commitments. This strategic refinancing underpins the Company’s ongoing commercial paper program and general corporate financing needs.
The original 364-day revolving credit facility, arranged with JPMorgan Chase Bank, N.A., was designed to backstop Home Depot’s expanded \(7 billion commercial paper program, particularly in connection with financing its acquisition of SRS Distribution, Inc., which was completed on June 18, 2024. As of May 6, 2025, there were no outstanding borrowings under the terminated \)2 billion facility.
Simultaneously, the Company terminated its remaining revolving credit facility agreements and replaced them with two new agreements that collectively provide the same $7 billion in borrowing commitments. These new credit facilities continue to support Home Depot’s liquidity needs for general corporate purposes and as a backstop for the commercial paper program.
As of the most recent fiscal quarter ending October 27, 2024 (Q3 2024), Home Depot reported total liabilities of \(92.4 billion, including \)28.1 billion in total current liabilities and $49.7 billion in long-term debt. The Company’s robust credit facilities ensure continued financial flexibility to manage these obligations effectively.
The neutral effect of terminating the \(2 billion facility—due to zero outstanding borrowings at termination—combined with establishing new revolving facilities totaling \)7 billion, signals a proactive approach to maintaining optimal capital structure and liquidity.
These credit facility modifications are aligned with Home Depot’s broader corporate finance strategy to support recent acquisitions and ongoing working capital needs. The increased revolving commitments backstop an expanded commercial paper program, reflecting confidence in Home Depot’s creditworthiness and market positioning.
From prior earnings calls, Home Depot management emphasized capital efficiency and strategic acquisitions as cornerstones of growth. This refinancing move underscores the Company’s commitment to maintaining a strong liquidity position amid economic uncertainties and industry dynamics.
This update answers key questions about who (The Home Depot), what (credit facility termination and new credit agreements), when (May 6, 2025 with recent financial data from Q3 2024), and where (corporate finance headquarters in Atlanta, Georgia) the company strategically refined its financing framework.
Richard V. McPhail, Executive Vice President and Chief Financial Officer, stated in the 8-K filing dated May 6, 2025: “The new revolving credit facility agreements allow for borrowings for general corporate purposes, including to backstop the Company’s $7.0 billion commercial paper program.”
Full 8-K report available here: Home Depot 8-K May 6, 2025
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