Dollar General may issue $3.25 billion notes for Family Dollar purchase

By Susanna Moon

Chicago, Sept. 10 – Dollar General Corp. may issue up to $3.25 billion principal amount of senior notes in a Rule 144A private placement to help fund the acquisition of Family Dollar Stores, Inc., according to an SC TO-T filing with the Securities and Exchange Commission.

Financing for the acquisition will consist of a $6.5 billion seven-year senior secured term loan, a $2.5 billion senior secured asset-based revolving credit facility and either up to $3.25 billion principal amount of notes or up to $3.25 billion of senior unsecured increasing-rate loans, or bridge loans.

As reported on Aug. 18, Dollar General is planning to acquire Family Dollar for $78.50 per share in cash in a deal valued at $9.7 billion and has received a commitment for $12.25 billion of debt to fund the purchase.

Family Dollar has already agreed to be acquired by Dollar Tree Inc. for $74.50 per share, comprising $59.60 in cash and $14.90 in Dollar Tree stock, subject to a collar, as previously reported.

Dollar General is a Goodlettsville, Tenn.-based discount retailer. Family Dollar is a Matthews, N.C.-based chain of discount stores. Dollar Tree is a Chesapeake, Va.-based discount store operator.

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