99 Cents Only Stores, the California-based extreme value retailer, amended its existing term loan facility with Royal Bank of Canada,  adjusted its ABL facility and entered into a second lien facility.

The maturity date of the first lien term loan facility was extended from January 2019 to January 13, 2022, with a springing feature to June 1, 2019 if a certain percentage of the company’s existing senior notes, due in 2019, remain outstanding at that time.

In connection with the amendment, approximately $130 million of the existing first lien term loans held by the company’s equity sponsors were converted to a new pay-in-kind second lien term loan facility, with Wilmington Trust serving as administrative agent. It increased the junior lien capacity under the term loan facility, including for refinancing, along with certain term lender-friendly covenant modifications.

Additionally, according to a related 8-K filing, 99 Cents Only  amended its ABL facility to, among other things, extend the maturity of its FILO and revolving credit facilities, permit an exchange of its senior notes for new senior secured notes with a later maturity date, and permit the refinancing of B-2 loans under the existing credit agreement.

“We are pleased to have completed the amendment and extension of our term loan, which significantly improves our liquidity and debt maturity profile, providing additional runway to execute our turnaround plan,” said Geoffrey J. Covert, president and CEO of 99 Cents Only. “This transaction reflects significant support from our stakeholders and will enable us to continue to drive operational momentum and generate profitable long-term growth.”

Lenders approving the proposed amendment received an upfront fee of 50 basis points at closing. The first lien term loan annual interest rate will be equal to LIBOR plus 500 basis points, plus an additional 150 basis points to be paid in kind. The second lien term loan interest will be paid in kind at an annual rate equal to LIBOR plus 850 basis points.