8-KMaterial AgreementsFinancial EventsExhibits & Filings

DOLLAR GENERAL CORP 8-K Report, Material Agreement (Sep 13, 2019)

Filed September 13, 2019For Securities:DG

Summary

Dollar General Corporation (DG) filed an 8-K on September 13, 2019, to announce the entry into a new, unsecured amended and restated credit agreement. This new agreement, effective September 10, 2019, establishes a $1.25 billion five-year revolving credit facility that matures in September 2024. This facility replaces and terminates the Company's prior 2017 credit agreement, signifying a refinancing of its existing credit arrangements. The new credit facility provides Dollar General with significant liquidity and flexibility. It includes a sublimit for letters of credit and capacity for swingline loans. The agreement also grants the Company the option to request up to an additional $250 million in revolving commitments and potential extensions of the termination date, subject to certain conditions. The terms include customary covenants, financial ratios (fixed charge coverage and leverage ratios), and events of default, which are standard for corporate credit facilities.

Key Highlights

  • 1Dollar General entered into a new $1.25 billion unsecured five-year revolving credit facility (the "Revolving Facility") on September 10, 2019, replacing its previous 2017 credit agreement.
  • 2The Revolving Facility matures on September 10, 2024, providing a stable funding source for five years.
  • 3The new agreement offers flexibility with a $175 million sublimit for letters of credit and capacity for swingline loans.
  • 4Dollar General has the option to request up to an additional $250 million in revolving commitments, enhancing future funding potential.
  • 5Interest rates are based on an applicable margin plus LIBOR or a base rate, with terms subject to adjustment based on the Company's long-term debt ratings.
  • 6The agreement includes customary affirmative and negative covenants, as well as financial covenants requiring the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio.
  • 7The termination of the 2017 Credit Agreement and its replacement by the new 2019 Credit Agreement signifies a routine but important update to the Company's financing structure.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Dollar General's entry into a new material definitive agreement, specifically a $1.25 billion unsecured amended and restated credit agreement, and the subsequent termination of its prior credit agreement.

The new revolving credit facility is valued at $1.25 billion and has a five-year term, maturing on September 10, 2024.

Yes, the 2019 Credit Agreement allows Dollar General to request increased revolving commitments in an aggregate amount of up to $250.0 million, subject to certain conditions and lender approval.

The new credit agreement contains customary financial covenants that require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio, which are standard provisions for such credit facilities.