) --

Home Depot

(HD) - Get Report

said late Monday it's issued $2 billion in additional senior debt with plans to use the proceeds to refinance some existing debt and accelerate stock repurchases.

According to


, the Atlanta-based home improvement retailer priced $1 billion worth of 4.40% notes due in April 2021 and another $1 billion worth of 5.95% notes due in April 2041.

The Dow component also reiterated its outlook for earnings from continuing operations of $2.20 a share for its fiscal year ending in January 2012 with sales growth of 2.5% from last year's total of $68 billion. The current average estimate of analysts polled by

Thomson Reuters

is for earnings of $2.30 a share on revenue of $69.78 billion.

Home Depot is using the proceeds to refinance $1 billion worth of senior debt coming due this month and speed up the buyback of $1 billion worth of its common stock. The accelerated repurchase program, which is being conducted with Barclays Capital, is in addition to previously announced plans to use excess cash to buy back up to $2.5 billion worth of stock in 2011. At the end of 2010, Home Depot was authorized to repurchase up to $9.9 billion worth of its common stock.

"Creating strong shareholder value is a priority, and we are committed to returning capital to our shareholders in the form of dividends and share repurchases," said Frank Blake, the company's chairman and CEO, in a statement. "2010 was the first year of positive sales growth since 2006 and our business continues to stabilize.

Blake continued: "As such, we elected to take advantage of the attractive interest rate environment and raise incremental debt capital to be used for share repurchases."

Shares of Home Depot finished Monday's regular session at $36.65, down 2.1%, and then ticked lower in after-hours action. The stock has gained more than 14% in the past year but has pulled back since hitting a 52-week high of $39.38 on Feb. 22.


Written by Michael Baron in New York.

>To contact the writer of this article, click here:

Michael Baron


>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.