Bloomberg News

99 Cents Gets $925 Million in Debt Commitments for Ares Buyout

October 12, 2011

Oct. 12 (Bloomberg) -- 99 Cents Only Stores, the operator of 289 U.S. discount shops that’s being bought by Ares Management LLC and Canada Pension Plan Investment Board, got $925 million in debt-financing commitments to fund the acquisition.

Royal Bank of Canada, RBC Capital Markets, Bank of Montreal and BMO Capital Markets are providing a $150 million revolving line of credit, a $525 million term loan and a $250 million bridge facility to support the acquisition, according a regulatory filing yesterday.

99 Cents Only agreed to be acquired for about $1.6 billion in cash, the City of Commerce, California-based company said yesterday in a statement. Members of the founding Gold/Schiffer family support the $22-a-share offer and will continue to hold a minority stake in the company, according to the statement.

--Editors: Chapin Wright, John Parry

To contact the reporter on this story: Richard Bravo in New York at rbravo5@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus