Goldman Sachs sells $260 million of Dollar General 11 7/8% subordinated notes due 2017 at 90.5

By Paul A. Harris

St. Louis, Oct. 10 - Goldman Sachs & Co. sold $260 million of Dollar General Corp. 11 7/8% senior subordinated payment-in-kind toggle notes due July 15, 2017 (Caa2/CCC+) at 90.5 on Tuesday, according to a money manager from a mutual fund.

The source added that the Tuesday sale played to a "really good book."

"Some accounts were cut back," the source added.

The notes were priced in late June as part of a restructured issuance totaling $1.9 billion. However an unspecified amount of those notes went unplaced due to the mid-summer sell-off in the credit markets, according to market sources.

Late Thursday the new 11 7/8% notes were trading at 91 7/8 bid, 92 7/8 offered, according to the money manager.

The late June transaction also included $1.175 billion of 10 5/8% senior cash-pay notes due July 15, 2015 (Caa1/CCC+), which were priced at 98.027 to yield 11%.

According to the money manager, the cash pay notes have lately traded in a par bid context. The source added that in early July the cash-pay notes had traded as low as the high 80s.

The notes were part of the financing for Dollar General's merger with Buck Acquisition Corp., a Tennessee corporation indirectly controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. LP.

© 2015 Prospect News.
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