Dollar Tree entered into the third amendment of its existing credit facility, reducing the interest rate margin. The amount of the facility is unchanged.
According to a related 8-K filing, JPMorgan Chase served as administrative agent for the transaction.
The reduction in the interest rate margins was accomplished by replacing the existing term A loan facility with a new term loan A-1 facility that has terms identical to the existing term A facility and existing revolving facility. As a result, the total amount borrowed under the amended credit agreement is unchanged from the total amount borrowed under the existing credit agreement.
Loans made under the tranche a revolving commitments or the term A-1 facility will bear interest at LIBOR+1.75% per annum until the company delivers its quarterly compliance certificate to the lenders outlining its secured net leverage ratio for the quarter ended January 28, 2017. Prior to such date, the company will pay a commitment fee on the unused portion of the tranche A revolving commitments of 0.30% per annum.
The obligations under the term A-1 facility and the tranche A revolving commitments are secured by the same collateral and subject to the same guarantees as the loans under the existing credit agreement.