99 Cents Only bolsters capital structure

Leading single price point retailer 99 Cents Only has secured a major amendment and extension of its credit facility until 2021.

The operator of 391 stores, 283 of which are located in California, announced it successfully completed an amendment and extension of its asset-based revolving credit facility providing commitment of up to $160 million and extending the maturity date by five years to April 8, 2021.

“The ABL Facility is an important part of 99 Cents Only Stores' capital structure and we are very pleased with the successful completion of this five-year amendment,” said Geoffrey Covert, president and CEO. “Given the significant inventory reductions we've achieved, coupled with overall improvements in the company's working capital position, the $160 million in commitments provides more than ample capacity at competitive terms to meet our current and future liquidity needs to grow the business. We appreciate the support and long term commitment that the syndicate of new and existing lenders has demonstrated to the business and our strategy to position 99 Cents Only Stores for long-term growth."

Royal Bank of Canada, UBS AG and Citizens Business Capital acted as joint lead arrangers on the amendment.