Updated from 9:19 a.m.
Home Depot (HD) reportedly agreed to cut the sale price of its supply unit by $1.8 billion -- or nearly 18% -- as turmoil in the credit markets hit financing for the deal. The Atlanta-based home-improvement giant will now receive $8.5 billion for HD Supply, several media reports said Monday. Private-equity firms Carlyle Group, Bain Capital and Clayton Dubilier & Rice had agreed to buy the division in June for $10.2 billion. The price cut isn't unexpected; Home Depot had said earlier this month that it was in talks to revise the terms of the transaction due to tightening credit conditions. According to The Wall Street Journal, the revised deal calls for Home Depot to retain about 12.5% of the supply unit's equity, and guarantee some of the debt issued by the banks to finance the deal. Investors had feared that the deal wouldn't get done at all, jeopardizing a massive buyback the company planned to initiate with proceeds of the sale. Shares of Home Depot were up 60 cents, or 1.7%, to $35.28 in afternoon trading.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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