WhiteHawk Capital Provides $1.5 Billion Loan to Family Dollar for Acquisition

WhiteHawk Capital Partners provided a $1.5 billion asset-based facility to Family Dollar Stores, Inc. as part of a first-in, last-out (FILO) term loan to support its acquisition by Brigade Capital Management and Macellum Capital Management. The loan highlights WhiteHawk's commitment to flexible financing solutions for middle-market companies with substantial growth prospects.

WhiteHawk Capital Partners, a private credit investment manager, has acted as the lead and sole agent in providing a $1.5 billion asset-based facility to Family Dollar Stores, Inc. This facility is part of a first-in, last-out (FILO) term loan to support the acquisition of Family Dollar by Brigade Capital Management, LP and Macellum Capital Management, LLC. The transaction, which closed on July 7, 2025, marks a significant milestone for Family Dollar, a leading U.S. discount retailer with over 7,000 locations nationwide.

The asset-based facility is designed to offer Family Dollar the flexibility and liquidity needed to transition under new ownership. Alex Zuckerman, Managing Director at WhiteHawk, expressed pride in delivering this tailored financing solution, reflecting the firm's commitment to supporting businesses with strong fundamentals and significant growth potential.

WhiteHawk's involvement in this transaction underscores its expertise in providing creative and flexible non-traditional capital solutions to middle-market companies facing liquidity challenges or operating in "out of favor" industries. Since 2015, WhiteHawk has structured 91 loans with 68 realizations, totaling over $4.6 billion in gross loans originated.

This acquisition aligns with Dollar Tree, Inc.'s (NASDAQ: DLTR) strategic plan to sharpen its focus on core operations and enhance growth in the value retail sector. The sale of Family Dollar to Brigade Capital Management and Macellum Capital Management is expected to net Dollar Tree approximately $800 million after necessary adjustments and monetization of cash through net working capital reduction. The company anticipates realizing about $375 million in tax benefits from losses on the sale.

The transaction highlights WhiteHawk's role in facilitating strategic acquisitions and its dedication to providing innovative financing solutions to companies with substantial growth prospects.

References:
[1] https://www.stocktitan.net/news/DLTR/white-hawk-capital-provides-loan-to-support-acquisition-of-family-o83w3def3nsv.html
[2] https://www.morningstar.com/news/business-wire/20250707011275/whitehawk-capital-provides-loan-to-support-acquisition-of-family-dollar
[3] https://www.businesswire.com/news/home/20250707011275/en/WhiteHawk-Capital-Provides-Loan-to-Support-Acquisition-of-Family-Dollar
[4] https://www.gurufocus.com/news/2961763/dollar-tree-completes-sale-of-family-dollar-business-to-brigade-capital-management-and-macellum-capital-management-dltr-stock-news