Dollar General 2008 Annual Report Download - page 93

91
6. Current and long-term obligations
Current and long-term obligations consist of the following:
Successor
(In thousands)
January 30, 2009
February 1, 2008
Senior secured term loan facility
$
2,300,000
$
2,300,000
Senior secured asset-based revolving credit facility
-
102,500
10 5/8% Senior Notes due July 15, 2015, net of discount of
$20,033 and $22,083, respectively 1,154,967 1,152,917
11 7/8/12 5/8% Senior Subordinated Notes due July 15, 2017
655,891
700,000
8 5/8% Notes due June 15, 2010
1,822
1,822
Capital lease obligations
9,939
10,268
Tax increment financing due February 1, 2035
14,495
14,495
4,137,114
4,282,002
Less: current portion
(14,158)
(3,246)
Long-term portion
$
4,122,956
$
4,278,756
On July 6, 2007, the Company entered into two senior secured credit agreements (the
“Credit Facilities”). The Credit Facilities provide financing of $3.425 billion, consisting of $2.3
billion in a senior secured term loan facility which matures on July 6, 2014, and a senior secured
asset-based revolving credit facility of up to $1.125 billion, subject to borrowing base
availability, which matures on July 6, 2013.
Under the Credit Facilities, the Company has the right at any time to request up to $325.0
million of incremental commitments under one or more incremental term loan facilities and/or
asset-based revolving credit facilities, subject to certain conditions and subject to the lender’s
desire to extend the incremental facilities.
The amount available under the senior secured asset-based revolving credit facility
(including up to $350.0 million for letters of credit) may not exceed the borrowing base
(consisting of specified percentages of eligible inventory and credit card receivables less any
applicable availability reserves). The senior secured asset-based revolving credit facility
includes a $1.0 billion tranche and a $125.0 million (“last out”) tranche. Repayments of the
senior secured asset-based revolving credit facility will be applied to the $125.0 million tranche
only after all other tranches have been fully paid down. As of January 30, 2009 and February 1,
2008, the Company had outstanding borrowings of $0 and $102.5 million, respectively, under
the “last out” tranche.
Borrowings under the Credit Facilities bear interest at a rate equal to an applicable
margin plus, at the Company’ s option, either (a) LIBOR or (b) a base rate (which is usually equal
to the prime rate). The applicable margin for borrowings is (i) under the term loan facility,
2.75% for LIBOR borrowings and 1.75% for base-rate borrowings (ii) as of January 30, 2009
and February 1, 2008, respectively, under the asset-based revolving credit facility (except in the
last out tranche described above), 1.25% and 1.50% for LIBOR borrowings; 0.25% and 0.50%
for base-rate borrowings and for any last out borrowings, 2.25% for LIBOR borrowings and
1.25% for base-rate borrowings. The applicable margins for borrowings under the asset-based
revolving credit facility (except in the case of last out borrowings) are subject to adjustment each
quarter based on average daily excess availability under the asset-based revolving credit facility.