99 Cents Only cuts 2nd debt deal in as many years
June 10, 2019 / Ben Unglesbee
Deep discounter 99 Cents Only reached a deal with creditors and its private equity owners to trade out debt for equity in the company, according to a press release from ratings firm S&P Global emailed to Retail Dive. Viewing the deal as a form of default once complete, S&P issued an automatic downgrade of the retailer's credit rating, to CC from CCC+. (The company did not immediately respond to request for comment.)Under the agreement, 99 Cents Only is to issue common and preferred stock in return for its outstanding $146 million second-lien term loan facility and $143 million secured notes. 99 Cents Only has made two debt deals in as many years as the retailer tries to keep its balance sheet intact and tries to hold its own against the dollar store giants.