Dollar General 2009 Annual Report Download - page 96

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DOLLAR GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Current and long-term obligations
Current and long-term obligations consist of the following:
Successor
(In thousands) January 29, 2010 January 30, 2009
Senior secured term loan facility ............... $1,963,500 $2,300,000
ABL Facility ............................. — —
105⁄8% Senior Notes due July 15, 2015, net of
discount of $14,788 and $20,033, respectively .... 964,545 1,154,967
117⁄8/125⁄8% Senior Subordinated Notes due July 15,
2017 .................................. 450,697 655,891
85⁄8% Notes due June 15, 2010 ................ 1,822 1,822
Capital lease obligations ..................... 8,327 9,939
Tax increment financing due February 1, 2035 ..... 14,495 14,495
3,403,386 4,137,114
Less: current portion ....................... (3,671) (14,158)
Long-term portion ......................... $3,399,715 $4,122,956
The Company entered into two senior secured credit agreements (the ‘‘Credit Facilities’’) at the
time of the Merger. As of January 29, 2010, the Credit Facilities provide total financing of
$2.995 billion, consisting of $1.964 billion in a senior secured term loan facility (‘‘Term Loan Facility’’)
which matures on July 6, 2014, and a senior secured asset-based revolving credit facility
(‘‘ABL Facility’’) of up to $1.031 billion, subject to borrowing base availability, which matures on July 6,
2013.
The amount available under the ABL 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 ABL Facility includes a $930.0 million
tranche and a $101.0 million (‘‘last out’’) tranche. Repayments of the ABL Facility will be applied to
the $101.0 million tranche only after all other tranches have been fully paid down.
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, 2.75% for LIBOR borrowings and
1.75% for base-rate borrowings (ii) under the ABL Facility (except in the last out tranche described
above) as of January 29, 2010 and January 30, 2009, 1.25% for LIBOR borrowings and 0.25% 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 ABL Facility (except in the case
of last out borrowings) are subject to adjustment each quarter based on average daily excess availability
under the ABL Facility. The interest rate for borrowings under the Term Loan Facility was 3.0% and
3.4% (without giving effect to the interest rate swaps discussed in Note 8) as of January 29, 2010 and
January 30, 2009, respectively.
In addition to paying interest on outstanding principal under the Credit Facilities, the Company is
required to pay a commitment fee to the lenders under the ABL Facility for any unutilized
commitments. The commitment fee rate is 0.375% per annum. The commitment fee rate will be
reduced (except with regard to the last out tranche) to 0.25% per annum at any time that the
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