Moody’s rates Dollar Tree loans Ba1, notes Ba3

Moody's Investors Service said it assigned a corporate family rating of Ba2, a probability of default rating of Ba2-PD and a speculative grade liquidity rating of SGL-1 to Dollar Tree, Inc.

The agency also assigned a Ba1 rating to the company's proposed senior secured $1.25 billion term revolving credit facility maturing 2020, the proposed $500 senior secured term loan A maturing 2020 and the proposed $5.2 billion term loan B maturing 2022.

Additionally, Moody's assigned a Ba3 rating to the company's proposed $2.5 billion senior unsecured notes maturing 2023.

The outlook is stable.

Proceeds will be used to acquire Family Dollar Stores, Inc. The acquisition will add about 8,101 stores to Dollar Tree's existing store base of 5,077 stores in the U.S. and 205 stores in Canada. The acquisition is subject to regulatory review and is expected to close in first half of 2015.

Moody's anticipates some store divestitures will be mandated by the regulators as part of the approval of the transaction.

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