ATLANTA, GA - Home Depot , Inc. (NYSE:HD) has made significant changes to its credit facilities, according to a recent 8-K filing with the Securities and Exchange Commission. The company has terminated a $1.0 billion three-year revolving credit facility and reduced commitments under another credit line, reflecting adjustments to its financial strategy.
The terminated credit facility, which was established on May 7, 2024, with JPMorgan Chase (NYSE:JPM) Bank, N.A. as the administrative agent, was initially set up to support general corporate purposes and finance the acquisition of SRS Distribution Inc. However, as of Wednesday, Home Depot concluded that this facility was no longer necessary. Notably, there were no borrowings under this facility at the time of its termination.
Concurrently, Home Depot reduced the aggregate commitments under its $3.5 billion 364-day revolving credit facility to $2.0 billion. This adjustment was made in accordance with the terms of the agreement. The company's commercial paper program, which permits borrowings up to $7.0 billion, is now backed by $7.0 billion of revolving credit facilities. It is important to note that there are currently no borrowings under the 364-Day Credit Facility.
These financial maneuvers come after the successful acquisition of SRS Distribution Inc., which was completed on June 18, 2024. The Home Depot's decision to streamline its credit facilities suggests a strategic shift in the company's approach to managing its capital and debt.
The information disclosed in this article is based on the official statement from the 8-K filing by Home Depot. This move by the retail giant may be of interest to investors and market analysts who closely monitor corporate financial strategies and their implications.
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