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HD Supply Deal Revised

October 15, 2007
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ATLANTA - The Home Depot® has amended the purchase and sale agreement for HD Supply to an acquisition corporation formed by affiliates of Bain Capital Partners, The Carlyle Group, and Clayton, Dubilier & Rice. The terms of the purchase and sale agreement were amended to reflect an $8.5 billion purchase price. That is approximately $1.8 billion less than the original $10.3 billion. The changes also included that the Home Depot would purchase a 12.5 percent equity interest for $325 million and that it would guarantee a $1 billion senior secured loan of HD Supply.

In connection with the amendment, Merrill Lynch, JP Morgan, and Lehman Brothers provided to the private equity consortium revised debt commitment letters for 100 percent of the third party debt financing. The closing took place on Aug. 30. After giving consideration for the equity investment and expenses associated with the transaction, the company expects to net approximately $7.9 billion in cash proceeds from the sale.

“Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale deliver shareholder value today and in the future as we will share in HD Supply’s upside potential,” said Frank Blake, chairman and CEO of The Home Depot. “We are now focused on our retail business.”

For more information, visit www.homedepot.com.

Publication date: 10/15/2007

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