Tough Credit Market Forces Changes to the Home Depot Supply Deal
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The lack of credit available presently almost scuttled the Home Depot Supply Deal to Bain Capital, Carlyle Group and Clayton, Dubilier & Rice. The fear of losing the deal led to a prolonged negotiating session with the Home Depot Board of Directors finally accepting 18 percent less than was initially negotiated in June.
The real sticking point was that the Banks were looking for an out. They were planning on lending Bain ect. the money and then selling that debt on the open market. When the credit market collapsed and the banks were going to have to keep the debt on their books, they started to look for any way out of the deal. Instead, a nervouse Home Depot Board decided to take 1.8 billion less to keep the deal alive and force the bankers to lend Bain the money.
Home Depot’s board yesterday agreed to sell Home Depot Supply for $8.5 billion to Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, about 18% less than the price hammered out in June when the buyout boom was at its peak.
In addition, Home Depot itself will hold about 12.5% of the unit’s equity, people familiar with the matter said, and guarantee some of the debt issued by the banks to finance the acquisition. That’s significant because if the banks can’t sell the debt in bond markets, and it sits on their balance sheet, they have to mark down its value, which some can ill-afford to do. via SmartMoney.com.
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
BY USING FIRST CLAIM INSURANCE ADJUSTERS YOU WILL HAVE THE ABILITY TO LOOK AT YOUR INSURANCE SETTLEMENT AND REALIZE FIRST ...
Comment by Lou on 27 August 2007:
I agree with your comments.