Home Depot to purchase $22.5 billion worth of shares in tender offer

By Lisa Kerner

Charlotte, N.C., July 10 - The Home Depot, Inc. began a tender offer for 250 million shares of its common stock priced between $39 and $44 per share as part of the company's recapitalization plan announced on June 19.

Home Depot said it plans to repurchase up to $22.5 billion in shares.

In addition, Home Depot may purchase up to an additional 39.5 million shares without extending the tender offer.

Proceeds from the sale of HD Supply, plus cash on hand, will be used to fund the offer, which is slated to end Aug. 16.

As previously reported, Home Depot agreed to sell the HD Supply business to Bain Capital Partners, the Carlyle Group and Clayton, Dubilier & Rice for $10.3 billion in a transaction expected close in the third quarter.

Lead dealer manager for the tender offer is Lehman Brothers, and the co-dealer manager is Merrill Lynch & Co. D.F. King & Co., Inc. is the information agent.

"While we expect the housing market to remain challenging for the rest of 2007 and into 2008, we plan to continue our reinvestment plans for the long-term health of our business, understanding that it will put short-term pressure on earnings," chief financial officer Carol Tome said in a company news release.

"We are confident that over the long term, we will deliver productivity improvements and enhance returns on invested capital as the investments take hold."

Home Depot is an Atlanta-based home improvement retailer. HD Supply distributes wholesale construction, industrial and maintenance supplies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.