Dollar Tree subsidiary gets new $750 million revolver due 2017

By Angela McDaniels

Tacoma, Wash., June 11 - Dollar Tree, Inc. subsidiary Dollar Tree Stores, Inc. entered into a $750 million revolving line of credit due June 6, 2017 on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The parent company is a guarantor.

The revolver has a $250 million accordion feature, a $150 million sublimit for letters of credit and a $50 million sublimit for swingline loans.

The subsidiary has two one-year extension options.

The initial pricing is Libor plus 90 basis points and a facility fee of 10 bps. The margin over Libor ranges from 90 bps to 155 bps, and the facility fee ranges from 10 bps to 20 bps. Both depend on the company's leverage ratio.

The company must also pay an annual administrative fee.

Wells Fargo Bank, NA is the administrative agent. Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and U.S. Bank NA are the lead arrangers and bookrunners. JPMorgan Chase Bank, NA and U.S. Bank are the syndication agents. Bank of America, NA, PNC Bank, NA and Royal Bank of Canada are the documentation agents.

Among other things, the credit agreement requires the maintenance of some financial ratios, restricts the payment of certain distributions and prohibits the incurrence of certain new debt.

The company and Wells Fargo agreed to terminate Dollar Tree's $550 million credit facility due Feb. 20, 2013.

Dollar Tree is a discount retailer based in Chesapeake, Va.

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