Dollar General 2008 Annual Report Download - page 5
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3
Company, LLP, CPP Investment Board (USRE II) Inc., and other equity co-investors
(collectively, the “Investors”) indirectly own a substantial portion of our capital stock through
their investment in Parent.
As a result of the Merger, our outstanding common stock is now owned by Parent and
certain members of management. Our common stock is not registered with the Securities and
Exchange Commission (“SEC”) and is not traded on a national securities exchange.
We entered into the following debt financings in conjunction with the Merger:
• We entered into a credit agreement and related security and other agreements
consisting of a $2.3 billion senior secured term loan facility, which matures on July 6,
2014 (the “Term Loan Facility”).
• We entered into a credit agreement and related security and other agreements
consisting of a senior secured asset-based revolving credit facility of up to
$1.125 billion (of which $432.3 million was drawn at closing and $132.3 million was
paid down on the same day), subject to borrowing base availability, which matures
July 6, 2013 (the “ABL Facility” and, with the Term Loan Facility, the “Credit
Facilities”).
• We issued $1.175 billion aggregate principal amount of 10.625% senior notes due
2015, which mature on July 15, 2015, and $725 million aggregate principal amount of
11.875%/12.625% senior subordinated toggle notes due 2017, which mature on
July 15, 2017. We repurchased $25.0 million and $44.1 million of the senior
subordinated toggle notes in the fourth quarter of fiscal 2007 and in the fourth quarter
of fiscal 2008, respectively.
Accounting periods before and after the Merger are referred to as the Predecessor and
Successor, respectively.
Overall Business Strategy
Our mission is “Serving Others.” To carry out this mission, we have developed a business
strategy of providing our customers with a focused assortment of everyday low priced
merchandise in a convenient, small-store format.
Our Customers. In general, we locate our stores and base our merchandise selection on
the needs of households seeking value and convenience, with an emphasis on rural and small
markets. However, much of our merchandise, intended to serve the basic consumable,
household, apparel and seasonal needs of these targeted customers, also appeals to a much
broader and higher income customer base.
Our Stores. The traditional Dollar General® store has, on average, approximately 7,000
square feet of selling space and generally serves customers who live within three miles of the
store. Of our 8,414 stores operating as of February 27, 2009, more than 60% serve communities