Dollar General sets proposed term loan size at $2.43 billion

By Sara Rosenberg

New York, June 11 - Dollar General Corp. has set the size of its proposed seven-year term loan (B3) at $2.43 billion, according to a news release, ahead of the Tuesday bank meeting that will launch the deal into syndication.

Previously, based on filings with the Securities and Exchange Commission, the term loan was expected to be sized at $2.5 billion.

The company's $3.43 billion senior secured credit facility also includes a $1 billion six-year asset-based revolver, under which $302 million is anticipated to be drawn at close.

Goldman Sachs, Citigroup, Lehman Brothers and Wachovia are the joint lead arrangers and joint bookrunners on the credit facility. CIT Corp. is the administrative agent for the asset-based revolver.

Proceeds will be used to help fund the buyout of Dollar General by Kohlberg Kravis Roberts & Co. LP for $22.00 in cash per share.

Other LBO financing will come from a $1.9 billion high-yield bond offering, comprised of $1.45 billion of senior unsecured cash and PIK notes and $550 million of senior subordinated notes, and from $2.775 billion in equity.

About $68 million of certain of Dollar General's existing indebtedness will be retained following the buyout.

Dollar General is a Goodlettsville, Tenn., discount retailer.

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