Dollar Tree to Close More Than $4B in Term Loan Facilities
Dollar Tree announced that the lead arrangers for its new proposed senior secured credit facilities have allocated the loans to be made under its $1,000 million term loan A facility and $3,950 million term loan B facility. The company expects that the term loan A facility will bear interest at a rate of LIBOR plus 2.25% and the term loan B facility will bear interest at LIBOR (subject to a 0.75% floor) plus 3.50%.
The proceeds will finance the company’s pending acquisition of Family. The term loan commitments and the terms and conditions thereof (including the applicable interest rates) remain subject to the execution of definitive documentation, which is expected to occur concurrently with or in advance of the consummation of the acquisition. The term loan B facility may be funded in advance of the acquisition.