MATTHEWS, N.C., Sept. 28 /PRNewswire-FirstCall/ -- Family Dollar Stores,
Inc. (NYSE: FDO) announced today it has successfully raised $250 million
through a private placement of senior notes (the "Notes") to a group of
institutional accredited investors. As previously announced, the Company's
Board of Directors recently authorized the Company to purchase from time to
time, as market conditions warrant, up to $300 million of the Company's Common
Stock, in addition to prior authorizations. The proceeds from the financing
will be used to repurchase the Company's Common Stock. The purchases could be
made in the open market, in private transactions, or otherwise.
The Notes, co-issued by Family Dollar Stores, Inc. and its subsidiary
Family Dollar, Inc. and guaranteed by certain of the Company's other
subsidiaries, are unsecured. They were issued in two tranches at par. The
first tranche has an aggregate principal amount of $169 million, matures in
ten years, and has a coupon of 5.41% per annum. The second tranche has an
aggregate principal amount of $81 million, matures in ten years with
amortization commencing in the sixth year, and has a coupon of 5.24% per
annum.
The sale of the Notes was effected in transactions not requiring
registration under the Securities Act of 1933, as amended. Such securities
may not be re-offered or re-sold in the United States in the absence of an
effective registration statement or exemption from registration requirements.
This announcement does not constitute an offer to sell or the solicitation
of an offer to buy the securities described herein, nor shall there be any
sale of these securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities law of any such jurisdiction.
With approximately 5,900 stores in a 44-state area ranging as far
northwest as Idaho, northeast to Maine, southeast to Florida, and southwest to
Arizona, Family Dollar is one of the fastest growing discount store chains in
the United States. Family Dollar has provided value-conscious consumers with
competitive prices at neighborhood stores for over forty-five years. Offering
a consistent selection of name-brand and good quality merchandise in an
attractive and convenient shopping environment, the Company is focused on
continuing to meet the needs of shoppers looking for excellent value.
Certain statements contained in this press release or in other press
releases, public filings, or other written or oral communications made by the
Company or our representatives, which are not historical facts are forward-
looking statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
address the Company's plans, activities or events which the Company expects
will or may occur in the future. These forward-looking statements may be
identified by the use of the words "plan," "estimate," "expect," "anticipate,"
"probably," "should," "project," "intend," "continue," and similar terms and
expressions. Various risks, uncertainties and other factors could cause
actual results to differ materially from those expressed in any forward-
looking statements. Such risks, uncertainties and other factors include, but
are not limited to:
- competitive factors and pricing pressures, including energy prices
- changes in economic conditions,
- the impact of acts of war or terrorism,
- changes in consumer demand and product mix,
- unusual weather or natural disasters that may impact sales and or
operations,
- the impact of inflation,
- merchandise supply and pricing constraints,
- success of merchandising and marketing programs,
- general transportation or distribution delays or interruptions,
- dependence on imports,
- changes in currency exchange rates, trade restrictions, tariffs,
quotas, and freight rates,
- availability of real estate,
- costs and delays associated with building, opening and operating new
distribution facilities and stores,
- costs, potential problems and achievement of results associated with
the implementation of new programs, systems and technology, including
supply chain systems, store technology, cooler installations and urban
initiative programs,
- changes in food and energy prices and their impact on consumer spending
and the Company's costs,
- adverse impacts associated with legal proceedings and claims,
- changes in shrinkage,
- changes in health care and other insurance costs,
- changes in the Company's ability to attract and retain employees,
- changes in state or federal legislation or regulations, including the
effects of legislation and regulations on wage levels and entitlement
programs.
Consequently, all of the forward-looking statements made by the Company in
this and other documents or statements are qualified by these and other
factors, risks and uncertainties. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
of this release. The Company does not undertake to publicly update or revise
its forward-looking statements even if experience or future changes make it
clear that projected results expressed or implied in such statements will not
be realized.
SOURCE Family Dollar Stores, Inc.
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Related links:
http://www.familydollar.com
Company News On-Call:
http://www.prnewswire.com/comp/300875.html
CONTACT:
Kiley F. Rawlins, CFA, Divisional Vice
President of Family Dollar Stores, Inc., +1-704-849-7496
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