Dollar General Prices Secondary Share Sale

NEW YORK (Reuters) – Dollar General Corp (DG.N) on Wednesday priced 26 million shares at $27 each in a secondary public offering that allowed certain shareholders to sell their stock, the company said in a statement.

Private equity firm Kohlberg Kravis Roberts & Co owned 88 percent of Dollar General’s shares following the company’s public offering in November, but it was unclear from the statement if KKR was the only selling shareholder.

If KKR is the only party selling shares, it will still retain an 80-percent stake after the sale. The 26 million shares that were priced are about 7 percent of the total outstanding shares as of March 20, 2010, according to Thomson Reuters data.

Certain shareholders have granted the underwriters an option to buy up to 3.9 million additional shares, the discount retailer said. The offering is expected to close on April 20, 2010.

Dollar General is not selling any shares and will not receive any proceeds from the offering, it said.

Citigroup Inc (C.N), Goldman Sachs & Co and KKR, along with Bank of America Merrill Lynch (BAC.N) and JPMorgan (JPM.N), are serving as joint book running managers for the offering.

Barclays Capital, Wells Fargo Securities (WFC.N), Sanford C. Bernstein, Deutsche Bank Securities (DBKGn.DE) and HSBC (HSBA.L) acting as co-managers.