Ares and CPPIB-owned 99 Cents Only Stores closes recap deals
99 Cents Only Stores LLC, a Commerce, California-based discount retailer, has completed recapitalization deals intended to eliminate US$300 million of debt and enhance the company's liquidity position. As part of the transactions, 99 Cents Only Stores and its sponsors, Ares Management and Canada Pension Plan Investment Board (CPPIB), entered into stakeholder agreements to convert all second lien debt and 92.1 percent of third lien debt into new preferred and common equity. Following the transactions, Ares and CPPIB continue to hold 73 percent ownership and majority control. Ares and CPPIB acquired 99 Cents Only Stores in 2012 for US$1.6 billion.
19 July 2019•3 mins read
