Dollar Tree, Inc. (“the Company”; NASDAQ: DLTR), the nation's leading operator of discount variety stores selling everything for $1 or less, today announced that its Board of Directors has authorized the repurchase of up to $2 billion of its common stock. Stock repurchases may be made, from time-to-time, either in the open market or through privately negotiated transactions, depending on market conditions and other factors, in accordance with Securities and Exchange Commission requirements. This new program replaces the October 2011 share repurchase program.
$1 Billion Variable Maturity Accelerated Share RepurchaseIn addition, the Company entered into agreements with JPMorgan Chase Bank, National Association, to repurchase $1 billion of its common shares under a variable maturity accelerated share repurchase program, 50% of which is collared and 50% of which is uncollared. The specific number of shares to be repurchased under the uncollared program will be based on the volume-weighted average share price of the Company's common shares during the term of the program, less a discount, with the collared portion being subject to a minimum and maximum number of repurchased shares.
Private Placement of $750 Million Senior NotesThe Company also completed a private placement to institutional investors of $750 million aggregate principal amount of Senior Notes. The Notes include three tranches, with $300 million of 4.03% Senior Notes due in September 2020, $350 million of 4.63% Senior Notes due in September 2023 and $100 million of 4.78% Senior Notes due in September 2025. JPMorgan Securities LLC and Wells Fargo Securities, LLC acted as Joint Placement Agents on behalf of the Company, in connection with the private placement of the notes.
The $1 billion Accelerated Share Repurchase announced today will be financed by proceeds from the sale of these notes and $250 million of available cash. As of August 3, 2013, the Company had $250 million outstanding under its revolving line of credit and had $413.7 million in cash and cash equivalents.