The Home Depot, Inc. (NYSE:HD), one of the largest home improvement retailers worldwide, is planning to sell notes worth $3.25 billion to refinance its debt and repurchase its stock, according to a report from Bloomberg.

Home Depot

The report indicates that the home improvement retailer’s bond offering is the largest since 2006 when it sold $5 billion bonds. The Home Depot, Inc. (NYSE:HD) will sell its notes in three parts.

Home Depot might offer $1.15 billion worth of securities

A person knowledgeable about the offering said The Home Depot, Inc. (NYSE:HD) might offer $1.15 billion worth of securities that will mature in 2018, and pay a yield of 60 basis points higher than Treasuries with similar maturity date. The company could also offer $1.1 billion bonds due on 2014 with an interest of 95 basis points and another $1 billion bond due on 2044 with 115 basis points interest, higher than the benchmarks.

Based on its regulatory filing with the Securities and Exchange Commission (SEC), The Home Depot, Inc. (NYSE:HD) intends to use the proceeds from the bond offering to repay its $1.25 billion of 5.25% securities set to mature on December 16. The company also plans to repurchase its stock.

According to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority last April, The Home Depot, Inc. (NYSE:HD) issued $1 billion of 4.2% bonds with maturity date on 2043. The bonds are set to earn 110 basis points higher hat Treasuries, but it declined to 92.8 cents on the dollar, and the yield was only 4.65% last week.

Moody’s Investors Service has a ranking of A3 for those types of securities and the equivalent rating from Standard & Poor’s is A-.

The company is focused on innovation: Home Depot

Last month, Craig Menear, executive vice president of The Home Depot, Inc. (NYSE:HD) said that the company is focused on innovation during the third quarter this year. According to him, the company has many new products such as Behr premium DeckOver wood & concrete coatings as well as 90-watt equivalent floodlight Cree.

The board of directors of The Home Depot, Inc. (NYSE:HD) also approved a cash dividend of $0.39 per share in the second quarter, which will be payable on September 19 to shareholders on record after the closing of the market on September 5.