99 Cent Stores talks $525 million term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, March 22 - 99 Cent Only Stores launched its $525 million senior secured term loan on Thursday afternoon with price talk of Libor plus 375 basis points to 400 bps with a 1.25% Libor floor and a par offer price, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Commitments are due on March 29.

Proceeds will be used to reprice an existing $525 million term loan that was obtained late last year at pricing of Libor plus 550 bps with a 1.5% Libor floor and was sold at an original issue discount of 98.

The existing loan has soft call protection of 102 in year one and 101 in year two, and as a result, existing lenders are getting paid down at 102.

RBC Capital Markets, BMO Capital Markets and Deutsche Bank Securities Inc. are the lead banks on the deal.

99 Cent is a City of Commerce, Calif.-based operator of extreme value retail stores.

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