| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dollar Tree, Inc. > News item |
S&P: Dollar Tree loans BBB
S&P said it assigned BBB ratings to Dollar Tree Inc.'s new revolver, term loan A and term loan B.
The recovery rating is 1, indicating 90% to 100% expected default recovery.
S&P also said it revised the recovery rating on the company's $2.5 billion 5¾% senior notes due 2023 and $750 million 5¼% senior notes due 2020 to 5 from 6, resulting in an upgrade of those notes to BB from BB-.
The 5 recovery rating indicates 10% to 30% expected default recovery.
All of the company’s other ratings, including the BB+ corporate credit rating and stable outlook, are unchanged.
The improved recovery on the senior notes is due to the increased amortization on the senior secured credit facilities, resulting in lower principal and interest outstanding in a payment default scenario, S&P explained.
The agency also said it valued the company on a going concern basis using a 6x multiple applied to the projected emergence-level EBITDA of about $980 million.
Same-store sales increased 1.2% in the quarter that ended July 30, S&P said, and leverage is now less than 4x for the latest 12 months, down from the low-5x range in the year-ago period.
Overall, Dollar Tree is expected to continue de-leveraging over the next year given solid operating performance and financial policies aimed at debt reduction, the agency said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.