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99 Cents Only Stores LLC -- Moody's says 99 Cents' Transaction Support Agreement is a distressed exchange; PDR downgraded to Ca-PD

Moody's Investors Service ("Moody's") today stated that if the Transaction Support Agreement announced by 99 Cents Only Stores LLC on 29 May 2019 proceeds as outlined, it will constitute a distressed exchange, which is an event of default under Moody's definition of default. As a result, Moody's downgraded the 99 Cents Only Stores LLC's Probability of Default rating to Ca-PD from Caa2-PD. Under the Transaction Support Agreement all of 99 Cents' Second Lien debt holders and 89% of its Third Lien debt holders committed to convert their existing debt holdings (approximately $290 million in total) to preferred and common equity.