8-KMaterial AgreementsExhibits & Filings

DOLLAR GENERAL CORP 8-K Report, Material Agreement (Aug 4, 2009)

Filed August 4, 2009For Securities:DG

Summary

This 8-K filing by Dollar General Corporation (DG) on August 4, 2009, primarily concerns a significant amendment to its Asset-Based Lending (ABL) Credit Agreement dated July 6, 2007. The key event reported is the resignation of The CIT Group/Business Credit, Inc. (CIT) as the Administrative Agent, Collateral Agent, Swingline Lender, and Letter of Credit Issuer, and the appointment of Wells Fargo Retail Finance, LLC (Wells Fargo) as the successor in these roles, effective July 31, 2009. Furthermore, the amendment details the termination and reduction of $94 million in revolving credit commitments previously held by CIT to zero. This action also resulted in a permanent reduction of the aggregate revolving credit commitments under the agreement. The company fulfilled its obligations to CIT, including outstanding fees and an expense deposit, to facilitate this transition. Investors should note this change in credit facility agents and the reduction in available credit lines as it could impact the company's liquidity and financial flexibility.

Key Highlights

  • 1Dollar General (DG) amended its ABL Credit Agreement, effective July 31, 2009.
  • 2The CIT Group/Business Credit, Inc. (CIT) resigned as Administrative Agent, Collateral Agent, Swingline Lender, and Letter of Credit Issuer.
  • 3Wells Fargo Retail Finance, LLC (Wells Fargo) was appointed as the successor agent for the ABL Credit Agreement.
  • 4Revolving credit commitments held by CIT, totaling $94 million, were terminated and reduced to zero.
  • 5This termination resulted in a permanent reduction of the aggregate revolving credit commitments under the agreement.
  • 6The company paid all outstanding fees and expenses to CIT to finalize the agent transition.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a material amendment to Dollar General's Asset-Based Lending (ABL) Credit Agreement, specifically related to a change in the administrative agent and a reduction in credit commitments.

Wells Fargo Retail Finance, LLC has been appointed as the new Administrative Agent, Collateral Agent, Swingline Lender, and Letter of Credit Issuer, replacing The CIT Group/Business Credit, Inc.

The departure of CIT and the appointment of Wells Fargo resulted in the termination of $94 million in revolving credit commitments previously held by CIT. This also led to a permanent reduction in the total aggregate revolving credit commitments available under the agreement, which could affect the company's available liquidity.

Yes, Dollar General paid all outstanding fees and expenses owed to CIT in its capacity as the former Administrative Agent, along with an expense deposit, to finalize the amendment and agent transition.