Summary
This Form 8-K filing from Dollar General Corporation (DG) on September 27, 2012, announces a significant material definitive agreement related to its previously announced $500 million common stock repurchase program. Specifically, the company entered into a Share Repurchase Agreement with Buck Holdings, L.P. to buy back approximately $250 million worth of its own shares from this significant shareholder. This transaction is a key component of the company's capital allocation strategy and demonstrates a commitment to returning value to shareholders. The closing of this repurchase is subject to certain conditions, including lender consent for the company's senior secured credit facilities and the successful completion of a secondary offering by certain selling shareholders. The funding for this buyback is expected to come from the company's asset-based revolving credit facility.
Key Highlights
- 1Dollar General entered into a Share Repurchase Agreement with Buck Holdings, L.P. on September 25, 2012.
- 2The agreement is for the repurchase of approximately $250 million in Dollar General common stock.
- 3This transaction is part of a larger $500 million common stock repurchase program previously announced by the company.
- 4Buck Holdings, L.P. is identified as a significant shareholder with interests held by private investor groups, including affiliates of Kohlberg Kravis Roberts & Co. L.P. and Goldman, Sachs & Co.
- 5The closing of the share repurchase is contingent upon receiving consent from lenders under the company's senior secured credit facilities.
- 6The repurchase also requires the consummation of a secondary offering of shares by certain selling shareholders.
- 7The company expects to finance the repurchase using its asset-based revolving credit facility.