Family Dollar enters $300 million revolver, amends $400 million loan

By Aleesia Forni

Columbus, Ohio, Aug. 19 - Family Dollar Stores, Inc. entered into a new $300 million five-year revolving credit facility, as well as amending an existing $400 million four-year facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The amendment to the existing facility reduces the interest rate on the borrowings.

For both the new and existing credit facilities, interest will be based on Libor plus a margin dependent on the company's leverage ratio.

The $300 million revolver matures on Aug. 17, 2016. Family Dollar has two one-year extension options subject to approval by lenders for a majority of the commitment. The loan has a $100 million accordion feature.

Family Dollar also terminated an existing $200 million facility, transferring $138 million in letters of credit outstanding to the new $300 million facility.

Wells Fargo Bank, NA is the administrative agent for both the existing and new facilities.

Family Dollar is a Matthews, N.C.-based chain of discount stores.

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