Dollar Tree moves funds between term loan B and fixed-rate loan

By Sara Rosenberg

New York, June 8 – Dollar Tree Inc. downsized its seven-year term loan B to $3.3 billion from $3.45 billion and upsized its fixed-rate loan to $650 million from $500 million, according to a market source.

Also, the issue price on the term loan B firmed at par, the tight end of the 99.75 to par talk, the source said.

Pricing on the term loan B remained at Libor plus 275 basis points with a 0.75% Libor floor, and pricing on the fixed-rate loan remained at 4.25%.

The term loan B still has 101 soft call protection for one year and the fixed-rate loan is still non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to reprice/refinance a $3.95 billion term loan B priced at Libor plus 350 bps with a 0.75% Libor floor.

Dollar Tree is a Chesapeake, Va.-based discount store operator.

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