03/09/2024 | Press release | Distributed by Public on 03/09/2024 21:01
ITEM 1.01 | ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. |
On September 3, 2024, Dollar General Corporation (the "Company") entered into an unsecured amended and restated credit agreement (the "2024 Credit Agreement") with the initial lenders named therein, Citibank, N.A. as administrative agent, Bank of America, N.A. as syndication agent, Citibank, N.A., BofA Securities, Inc., Goldman Sachs Bank USA, U.S. Bank National Association and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners, and Fifth Third Bank, National Association, Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., PNC Bank, National Association, Regions Bank, The Huntington National Bank, Truist Bank, U.S. Bank National Association, and Wells Fargo Bank, National Association as co-documentation agents. The 2024 Credit Agreement provides for a $2.375 billion unsecured five-year revolving credit facility (the "Revolving Facility") which allows for a subfacility for letters of credit of up to $100 million, of which $70 million is currently committed and $30 million is uncommitted. The Revolving Facility also includes a subfacility with a borrowing capacity of up to $50 million available for short-term borrowings referred to as swingline loans.
The 2024 Credit Agreement provides that the Company has the right at any time to request increased revolving commitments in an aggregate amount of up to $500.0 million. The Company also has the right, subject to certain limitations and conditions, to request extensions of the termination date. The lenders under the 2024 Credit Agreement will not be under any obligation to provide any such increased revolving commitments or extensions, and any such addition of or increase in commitments or extensions of the termination date will be subject to certain customary conditions precedent.
Borrowings under the Revolving Facility bear interest at a rate equal to an applicable interest rate margin plus, at the Company's option, either (a) Adjusted Term SOFR (which is Term SOFR (as defined in the 2024 Credit Agreement) plus a credit spread adjustment of 0.10%, but in no event less than 0%) or (b) a base rate (which is the highest of (i) Citibank N.A.'s publicly announced "base rate," (ii) the federal funds rate plus 0.5% and (iii) Adjusted Term SOFR for an interest period of one month (but in no event less than 0%), plus 1.00%). The applicable interest rate margins for borrowings and the facility fees under the 2024 Credit Agreement are subject to adjustment from time to time based on the Company's long-term senior unsecured non-credit-enhanced debt ratings.The Company is also required to pay a facility fee to the lenders under the Revolving Facility for any used and unused commitments and customary fees on letters of credit issued under the Revolving Facility. As of September 3, 2024, the applicable interest rate margin for Adjusted Term SOFR loans is 1.015% and the commitment fee rate is 0.110%. The applicable interest rate margins for borrowings, the facility fees and the letter of credit fees under the Revolving Facility are subject to adjustment from time to time based on the Company's non-credit enhanced long-term senior unsecured debt ratings.
The Company may voluntarily repay outstanding loans under the 2024 Credit Agreement at any time without premium or penalty, other than customary "breakage" costs with respect to Adjusted Term SOFR loans.
The 2024 Credit Agreement contains a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company's and its subsidiaries' ability to: incur additional liens; sell all or substantially all of the Company's assets; consummate certain fundamental changes or change the Company's lines of business; and incur additional subsidiary indebtedness. The 2024 Credit Agreement also contains financial covenants that require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio, as well as customary events of default, the occurrence of which could result in amounts borrowed under the Revolving Facility becoming due and payable and remaining commitments terminated prior to its September 3, 2029 scheduled termination date.