Home Depot Eyes $12.5 Billion Debt Package to Fund SRS Merger

Home Depot Inc. told investors it expects to take on $12.5 billion of debt to help fund its planned purchase of building-products distributor SRS Distribution Inc.

The world’s largest hardware store chain plans to fund the acquisition with cash on hand, as well as new commercial paper and unsecured notes, Chief Financial Officer Richard McPhail said during a conference call Thursday. The deal is valued at about $18.25 billion.

Customers outside a Home Depot store.

Photographer: Joe Buglewicz/Bloomberg

The company estimates the commercial paper and unsecured notes portion will amount to $12.5 billion, a preliminary projection that is subject to change, according to an investor presentation ...