Dollar Tree arranges financing for Family Dollar purchase

Chesapeake, Va. - Dollar Tree Inc. is arranging financing for its pending acquisition of Family Dollar Stores Inc. To that end, Dollar Tree has priced a private offering of $$2.5 billion of senior notes due 2023 and $750 million of senior notes due 2020. The 2023 notes will bear an annual interest rate of 5.75% and the 2020 notes will bear an annual interest rate of 5.25%.



Dollar Tree has also arranged for a $1 billion term loan with interest of LIBOR plus 2.25% and a $3.95 billion term loan with interest of LIBOR (subject to a 0.75% floor) plus 3.5%.



The notes will be initially issued by Family Tree Escrow LLC, a newly formed subsidiary of the company, and the proceeds will be held in escrow pending the consummation of the acquisition. The offering of the notes is expected to close on Feb. 23, 2015, subject to customary closing conditions.