Search
 

Dollar General IPO Has a Catch

GOODLETTSVILLE, TN-The discounter may put $750 million in proceeds toward $4 billion debt.

By Carl Cronan | Updated on August 24, 2009

GOODLETTSVILLE, TN-Dollar General Inc. is proceeding with a previously announced $750-million initial public offering, though observers say the deal may have a downside to it because of billions of dollars in debt and lease obligations. A report by CNNMoney.com points out that some of the IPO proceeds will be used to pay down the $4.1 billion currently hanging over the company.

Dollar General, which offers bargain merchandise to customers in smaller towns, has more than 8,500 stores in 35 states and posted sales of $10.5 billion last year. It was previously publicly traded from 1968 until two years ago, when private equity firm Kohlberg Kravis Roberts bought the company for $7 billion.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.