Dollar Tree 2011 Annual Report Download - page 43

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NOTE 5—LONG-TERM DEBT
Long-term debt at January 28, 2012 and January 29, 2011 consists of the following:
(in millions) January 28, 2012 January 29, 2011
$550.0 million Unsecured Credit Agreement, interest payable
monthly at LIBOR, plus 0.50%, which was 0.77% at
January 28, 2012, principal payable upon
expiration of the facility in February 2013 $250.0 $ 250.0
Demand Revenue Bonds, interest payable monthly at a
variable rate which was 0.27% at January 28, 2012,
principal payable on demand, maturing June 2018 15.5 16.5
Total long-term debt $265.5 $ 266.5
Less current portion 15.5 16.5
Long-term debt, excluding current portion $250.0 $ 250.0
Maturities of long-term debt are as follows: 2012 – $15.5 million and 2013 – $250.0 million.
Unsecured Credit Agreement
In 2008, the Company entered into the Agreement
which provides for a $300.0 million revolving line of
credit, including up to $150.0 million in available letters
of credit, and a $250.0 million term loan. e interest
rate on the facility is based, at the Company’s option, on
a LIBOR rate, plus a margin, or an alternate base rate,
plus a margin. e revolving line of credit also bears a
facilities fee, calculated as a percentage, as defined, of
the amount available under the line of credit, payable
In all of the remaining cases, plaintiffs also assert various
state law claims for which they seek class treatment. e
Georgia suit seeks statewide class certification for those
assistant managers similarly situated during the relevant
time periods and the Florida, Colorado, Michigan and
Illinois cases seek nationwide certifications for those
assistant store managers similarly situated during the
relevant time periods. e Illinois case also includes
a purported class of all other hourly store associates,
making the same allegations on their behalf. e
Company has commenced its investigation and has filed
motions to dismiss and motions to transfer venue to the
Eastern District of Virginia in all cases. No rulings on
these motions have been made to date. e Plaintiffs
filed a motion with the federal court Multi-District
Litigation Panel to consolidate all these and other related
cases which motion was denied. To date, the only cases
in which class certification motions have been filed is in
the Illinois and Colorado actions. None of the cases have
been assigned a trial date.
e Company will vigorously defend itself in these
matters. e Company does not believe that any of
these matters will, individually or in the aggregate, have
a material effect on its business or financial condition.
e Company cannot give assurance, however, that one
or more of these lawsuits will not have a material effect
on its results of operations for the period in which they
are resolved. Based on the information available to the
Company, including the amount of time remaining before
trial, the results of discovery and the judgment of internal
and external counsel, the Company is unable to express
an opinion as to the outcome of those matters which are
not settled and cannot estimate a potential range of loss
on the outstanding matters.
quarterly. e term loan is due and payable in full at the
five year maturity date of the Agreement. e Agreement
also bears an administrative fee payable annually. e
Agreement, among other things, requires the maintenance
of certain specified financial ratios, restricts the payment
of certain distributions and prohibits the incurrence of
certain new indebtedness. As of January 28, 2012, the
Company had the $250.0 million term loan outstanding
under the Agreement and no amounts outstanding under
the $300.0 million revolving line of credit.
2011 Annual Report 41