99 Cents only Stores LLC has priced $350 million of five-year secured bonds at 7.5%, or the tight end of guidance, sources said. The Jefferies-led deal was upsized by $25 million.
Proceeds will be used, along with a concurrent preferred equity raise, to partially refinance the company's existing capital structure, which includes a first-lien term loan due January 2022. Funds resulting from the upsize will be used to pay down the company's asset-based lending facility, sources said.
Headquartered in Commerce, Calif., 99 Cents Only Stores is a dollar-store chain that offers a mix of regularly available and closeout groceries, consumables and seasonal merchandise, primarily priced at 99 cents or less. Terms:
| Issuer | 99 Cents Only Stores LLC |
| Ratings | B-/Caa1 |
| Amount | $350 million |
| Issue | Senior secured notes (144A/Reg S for life) |
| Coupon | 7.5% |
| Price | 100 |
| Yield | 7.5% |
| Maturity | Jan. 15, 2026 |
| Call | Non-call two (first call at par+50% coupon) |
| Trade (date) | Dec. 16, 2020 |
| Settle | Dec. 22, 2020 (T+4) |
| Joint physical bookrunners | JEFF/RBC |
| Joint bookrunners | UBS/Citizens/MUFG |
| Price talk | 7.75% area |
| Notes | Upsized from $325 million; make-whole at T+50; issuer may redeem up to 10% of notes at 103% per annum, until Jan. 15, 2023; change of control put at 101 |