Narrative
Full Description
Project narrative
On March 9, 2015, Dollar Tree and a group of banks signed into an agreement, consisting of $1.25 billion RCF and a $4.95 billion of term loan facilities. No Chinese Banks were involved. On September 22, 2016, financial close was reached on a deal (4th amendment to the original agreement) in which a syndicate of 48 banks — including Bank of China and China CITIC Bank International Limited — entered into a $1,275,000,000 USD syndicated loan agreement with Dollar Tree, Inc. — a Virginia-based operator of discount variety stores. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. The proceeds were used by the borrower for general corporate purposes, a common practice for companies seeking to optimize capital structure, refinance existing obligations, or support business expansion and operations. While Bank of China contributed $50,000,000 USD to this loan (Record ID#107971), China CITIC contributed $20,000,000 USD (Record ID#107972), the following lenders also participated: JPMorgan Chase Bank, N.A. ($166,275,000 USD), Wells Fargo Bank, N.A. ($33,000,000 USD), Fifth Third Bank ($53,000,000 USD), Royal Bank of Canada ($20,000,000 USD), City National Bank ($25,000,000 USD), U.S. Bank N.A. ($43,000,000 USD), PNC Bank, N.A. ($53,000,000 USD), Bank of Tokyo-Mitsubishi UFJ, Ltd. ($43,000,000 USD), Sumitomo Mitsui Banking Corporation ($43,000,000 USD), TD Bank, N.A. ($43,000,000 USD), Coöperatieve Rabobank U.A., New York Branch ($32,000,000 USD), Canadian Imperial Bank of Commerce, New York Branch ($25,000,000 USD), SunTrust Bank ($43,000,000 USD), The Bank of Nova Scotia ($58,000,000 USD), First Commercial Bank, Ltd., New York Branch ($15,000,000 USD), Capital One, N.A. ($43,000,000 USD), HSBC Bank USA, N.A. ($14,000,000 USD), Citizens Bank of Pennsylvania ($43,000,000 USD), Banco de Sabadell S.A., Miami Branch ($2,000,000 USD), Banner Bank ($500,000 USD), The Bank of East Asia, Ltd., New York Branch ($30,000,000 USD), Mercantil Commercebank ($7,725,000 USD), Stifel Bank & Trust ($15,000,000 USD), The Huntington National Bank ($15,000,000 USD), State Bank of India — New York ($25,000,000 USD), Union Bank & Trust ($8,000,000 USD), Capital Bank Corporation ($11,000,000 USD), Trustmark National Bank ($10,000,000 USD), Crédit Industriel et Commercial — New York Branch ($13,000,000 USD), Hua Nan Commercial Bank, Ltd., New York Agency ($15,000,000 USD), Bank of Taiwan, New York Branch ($10,000,000 USD), Bank of the West ($45,000,000 USD), Cathay Bank ($5,000,000 USD), Chang Hwa Commercial Bank, Ltd. ($10,000,000 USD), First Hawaiian Bank ($10,000,000 USD), First Tennessee Bank N.A. ($20,000,000 USD), KeyBank N.A. ($50,000,000 USD), Land Bank of Taiwan, Los Angeles Branch ($10,000,000 USD), Liberty Bank ($8,000,000 USD), Raymond James Bank, N.A. ($29,500,000 USD), Taiwan Cooperative Bank, Ltd., New York Branch ($10,000,000 USD), Siemens Financial Services, Inc. ($40,000,000 USD), and Taiwan Business Bank, Los Angeles Branch ($10,000,000 USD).
Staff comments
1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/935703/000110465916146355/a16-18831_1ex10d1.htm The dropbox link for the original agreement is available via: https://www.dropbox.com/scl/fi/156184ryaeed50wfb0zx0/Source_ID_217663.pdf?rlkey=m2d4islu7ocw3g2ua0vdc5bbg&st=mrn6ejxp&dl=0 2. Dollar Tree, Inc. is an American chain of discount variety stores that sells items for $1 or less. Headquartered in Chesapeake, Virginia, it operates more than 15,000 stores across the United States and Canada under the brands Dollar Tree and Family Dollar. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in September 2016 (0.87%) and an applicable margin based on credit ratings (2.25%).