By Paul A. Harris
Portland, Ore., Dec. 16 – 99 Cents Only Stores LLC priced an upsized $350 million issue of five-year senior secured notes (Caa1/B-) at par to yield 7½% on Wednesday, according to market sources.
The issue size increased from $325 million.
The yield printed 12.5 basis points through yield talk in the 7¾% area. Initial guidance was 7¾% to 8%.
The deal, which was completely circled up by reverse inquiry, was playing to over $800 million of orders early Wednesday, a trader said.
Jefferies LLC and RBC Capital Markets Corp. were the joint physical bookrunners. Additional bookrunners were UBS Securities LLC, Citizens Capital Markets Inc. and MUFG.
The notes were sold via 99 Escrow Issuer, Inc., which is to be merged with and into 99 Cents Only Stores.
The Commerce, Calif.-based price-point retail chain plans to use the proceeds, along with a concurrent preferred equity raise, to partially refinance its existing capital structure. The incremental proceeds resulting from the $25 million upsizing of the deal will be used to pay down the ABL facility.
| Issuer: | 99 Escrow Issuer, Inc., to be merged with and into 99 Cents Only Stores
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2026
|
| Securities: | Senior secured notes
|
| Joint physical bookrunners: | Jefferies LLC and RBC Capital Markets LLC
|
| Joint bookrunners: | UBS Securities LLC, Citizens Capital Markets Inc. and MUFG
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| First call: | Jan. 15, 2023 at 103.75
|
| Trade date: | Dec. 16
|
| Settlement date: | Dec. 22
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
