While Dollar Tree will not receive direct proceeds from the sale, the company is using the event to execute a strategic buyback. Once the block trade concludes, the retailer plans to repurchase $500 million of its own common stock directly from Goldman Sachs. The price of this buyback will mirror the per-share cost paid by the broker-dealers during the initial block trade.

Funding for this repurchase will be drawn from cash on hand, effectively utilizing a portion of the $2.5 billion share-repurchase authorization the company previously disclosed last year.