Dollar General Corp. (DG) Monday priced an offering of $400.0 million of its 1.875 percent senior notes due 2018 and $900.0 million of its 3.25 percent senior notes due 2023.
The 2018 notes will pay interest at a rate of 1.875 percent per annum and mature on April 15, 2018, while the 2023 notes will pay interest at 3.25 percent per annum and mature on April 15, 2023.
The interest on the notes will be paid semi-annually on April 15 and October 15 of each year, commencing October 15. Issuance of the notes is expected to occur on April 11, subject to customary closing conditions.
Subsequently, the company also said it will enter a new senior unsecured credit facilities consisting of a $1.0 billion five-year term loan facility and an $850 million five-year revolving credit facility, expected to be undrawn at closing.
Net proceeds from the sale of the notes, together with term loan borrowings under its new senior unsecured credit facilities, will be available to redeem the existing senior secured credit facilities and for general corporate purposes.
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