The wild speculation about a Home Depot (HD) private equity buy-out has been bounding around for weeks.
Well, an SEC filing may finally put a dagger in the heart of the rumors. Home Depot has filed a shelf regiatration for $5 billion in notes. The purpose of the funds would be to buy back HD stock.
Although the idea has been hair brained since it was floated, the media would not let it go. With operating income of about $8 billion and cash flow from operations of less than $6.5 billion, a $100 million price can’t be supported.
If you are going private, why borrow to buy back the stock.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.