Dollar General executives are planning to sell $1.3 billion of notes that would mature in 2018 and 2023 as part of a broader balance sheet overhaul that also includes new bank debt.
Goodlettsville-based Dollar General could sell its new debt as soon as today, Bloomberg is reporting. The notes would help the company pay down the nearly $2 billion in senior secured debt. The remaining funds to do that would come from a new $1 billion, five-year term loan and an $850 million five-year revolving credit line.
BofA Merrill Lynch, Citigroup, Goldman Sachs, JPMorgan, US Bancorp and Wells Fargo Securities are managing the offering for Dollar General, whose leaders have been working on the big refinancing for a while. Late last month, Moody's Investors Service upgraded the retailer's debt, citing in part the imminent completion of the new debt package.
At about 11:45 a.m., shares of Dollar General (Ticker: DG) were off slightly at $50.18. Year to date, they've climbed about 15 percent.