Dollar Tree plans US$2.8bn notes for acquisition of Family Dollar

摘要

US discount retailer dollar tree plans to debut in the junk bond market with US$2.8bn of notes to help pay for its US$8.5bn acquisition of rival Family Dollar Stores. According to a company filing, Dollar Tree has US$9.5bn of committed financing to pay for the deal, which will take its pro forma debt to 5.6x Ebitda from 3.3x at the end of 2013. JP Morgan has provided financing. The move, one of this year's more aggressive M&A deals by a company whose leverage ratios currently imply an investment-grade rating, comes as discount 'dollar' stores try to fend off big-box retailers such as Walmart in a weak US economy.