Home Depot plans $2 billion of debt to build cash, buy stock

Atlanta -- Home Depot said Monday it is returning to the corporate bond market for the second time in less than seven months to rebuild its cash stockpile and finance share buybacks.

According to a filing with the Securities and Exchange Commission, the company plans to sell 10- and 30-year bonds. It is offering $1 billion of each maturity.

Home Depot is replacing $1 billion of 5.2% notes issued in 2006 that matured March 1, and raising money to buy its own stock. The notes may be sold as soon as Monday.

Moody’s Investors Service changed the retailer’s outlook to positive on March 25, citing the “expectation that the size of Home Depot’s remaining share authorization will shrink over the near term,” it said in a statement.