The Home Depot Announces $2 Billion Senior Note Issuance and $1 Billion Accelerated Share Repurchase Program

The Home Depot HD, the world's largest home improvement retailer, today announced the pricing of a $2 billion senior note issuance. Net proceeds from the financing will be used to refinance $1 billion of senior notes that came due in March 2011 and to repurchase $1 billion of outstanding shares through an accelerated share repurchase program with Barclays Capital. The accelerated share repurchase is in addition to the Company's previously announced intention to repurchase approximately $2.5 billion of outstanding shares throughout 2011 using excess cash generated by the business. In February 2011, the Company announced a six percent increase in its quarterly cash dividend to 25 cents per share. The Company launched its stock repurchase program in 2002 and cumulatively through the end of fiscal 2010 had purchased approximately $30.1 billion of its outstanding common stock. As of the end of fiscal 2010, the Company had $9.9 billion remaining in its share repurchase authorization. The Company reiterated its sales and earnings per share guidance for fiscal 2011 where it expects sales to be up approximately 2.5% for the year and diluted earnings per share from continuing operations to be up approximately 9.5% to $2.20, excluding the impact of share repurchases.