Bulletin: Dollar General Inc.'s Proposed Debt Issuance Will Raise Leverage As Expected

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Sep. 6, 2022—S&P Global Ratings today said that Dollar General Corp.?s proposed $2.3 billion unsecured issuance is likely to result in increased leverage as expected. The company will use proceeds toward the $900 million in notes maturing in April of 2023, and for general corporate purposes. The company has guided for $2.75 billion in share repurchases this year and capital expenditures of $1.4 billion to $1.5 billion in addition to increasing the dividend by 31% in March of this year. The company?s leverage has been below its long-term target of debt to adjusted EBITDAR of 3x. We expect our measure of debt to adjusted EBITDA will increase

...NEW YORK (S&P Global Ratings) Sep. 6, 2022--S&P Global Ratings today said that Dollar General Corp.'s proposed $2.3 billion unsecured issuance is likely to result in increased leverage as expected. The company will use proceeds toward the $900 million in notes maturing in April of 2023, and for general corporate purposes. The company has guided for $2.75 billion in share repurchases this year and capital expenditures of $1.4 billion to $1.5 billion in addition to increasing the dividend by 31% in March of this year. The company's leverage has been below its long-term target of debt to adjusted EBITDAR of 3x. We expect our measure of debt to adjusted EBITDA will increase toward 3.0x from 2.6x as of year-end 2021. We could lower the rating if the company employs a more aggressive financial policy that results in adjusted leverage breaching the mid-3x area. The company reported strong earnings last week and mentioned signs of increased trade-down activity including an increase in private-brand...

Bulletin