This week, Durig Capital provides a brief update on 99 Cents Only Stores LLC, a deep discount retailer whose bonds we have reviewed in the past for our Fixed Income 2 (FX2) High Yield Managed Income Portfolio. 99 Cents Only Stores has recently been challenged by its outstanding debt obligations. Here are some of the highlights:
Deep discount retailer 99 Cents Only Stores recently completed an arrangement with creditors which would eliminate many of their short term debt obligations.
Debt to equity swaps are a common method companies use to improve liquidity.
Under the newly agreed upon terms, 99 Cents Only Stores will issue common and preferred stock for some of its outstanding debt.
Recent Financial Statements