99 Cents plans first-lien term loan amendment, new second-lien loan

By Sara Rosenberg

New York, Sept. 19 – 99 Cents Only Stores LLC is looking to amend its existing first-lien term loan to extend the maturity to Jan. 13, 2022 from January 2019, increase the interest rate by 1% per annum and reallocate about $130 million of the term loans held by its equity sponsors to a new second-lien term loan, according to a news release.

The second-lien loan would provide for interest to be paid in kind at an annual rate equal to Libor plus 725 basis points.

The extended term loan would have a springing feature to the current maturity date if a certain percentage of the company’s existing senior notes due 2019 remain outstanding at that time.

In addition, the amendment would increase the junior lien capacity available under the term loan and would make lender-friendly covenant modifications.

The amendment and extension transaction is subject to receipt of certain consents from lenders under the company’s existing term loan and ABL facilities, and other customary conditions.

Lenders are being offered upfront fees at closing for approvals.

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

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