An Acuris Company

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December 2017

Distressed Retail Watchlist

11 December 2017

Distressed Retail Watchlist

OVERVIEW

The Retail Watchlist is a topical subset of the broader Debtwire Distressed Watchlist for the month. The Watchlist

highlights bonds and loans of levered borrowers that are either engaged in balance sheet restructurings or face

pressure to reduce debt. For our Retail Watchlist, we include distressed companies exposed to swings in consumer

spending and tastes.

The list separately presents bonds and loans, and accompanying each security are recent trading levels and metrics

indicating credit quality. Links to all Debtwire intelligence, indicated by the gold company name, are provided for

insight into specific risk factors. “Available” in the Tearsheet column next to the company name indicates a link to a

Debtwire Research Tearsheet. To sort for companies included in the Retail Watchlist within the Excel version of the report,

filter for the number three in column C.

This month’s edition of the Retail Watchlist highlights 40 borrowers, an increase of four since last month. For the

month, zero departed the list, while four new borrowers joined. Among the companies listed, 22 borrowers have

distressed bonds, 26 borrowers have distressed loans, and eight borrowers have both bonds and loans.

Issuers making the list are culled primarily from Debtwire ’s distressed, restructuring and pre-restructuring

universes. New additions are generally characterized by trading levels of 80 or below. Other criteria include a yield

in the mid-teens or higher, eroding free cash flow, thin covenant cushions and/or steep near-term maturity hurdles.

TABLE OF CONTENTS:

All Borrowers…………..……………….....3

Distressed Bonds

Additions and Departures…………….5

Distressed Bonds Watchlist………....6

Distressed Loans

Additions and Departures…………….8

Distressed Loans Watchlist……...…..9

RESEARCH —

NORTH AMERICA

Yulia Latysheva

Credit Analyst

646.378.3173

Yulia.Latysheva@acuris.com

Michael Coleman

Credit Analyst

646.378.3186

Michael.Coleman@acuris.com

Tim Hynes

Head of Distressed Research

212.574.7878

Timothy.Hynes@acuris.com

Tarun Panchamia

Tarun.Panchamia@acuris.com

Distressed Retail Watchlist12/11/2017

December 2017 Borrowers:99 Cents Only Stores FULLBEAUTY Brands Rite Aid Corporation

Academy Limited Gibson Brands Save-A-Lot Inc

Albertsons Companies GNC Holdings Inc Sears Holdings

Ascena Retail Group Guitar Center Spencer Gifts

Belk Inc Hot Topic Sports Authority

BI-LO Iconix Brand Group The Fresh Market

Bluestem Group J. Crew Things Remembered

Bon-Ton Stores J.C.Penney TOMS Shoes

Charlotte Russe Lands' End Tops Holding II Corporation

Charming Charlie Inc Neiman Marcus Totes Isotoner Corporation (aka Indra Holdings)

Claire's Stores Nine West Toys "R" Us

David's Bridal NYDJ APPAREL LLC Vitamin Shoppe

Eddie Bauer Petco Animal Supplies

Freedom Group Limited PetSmart

An Acuris Company

Bonds

11 December 2017

Distressed Retail Watchlist

Additions:

Hot Topic

Distressed Retail Watchlist

12/11/2017

DISTRESSED BOND WATCHLIST

Company Name Research Sector CUSIPCoupon

(%)

Outstanding

(USDm)Maturity Ranking Moody's S&P

Current

Price

Current

YTM

Previous

PricePrice % Δ

LTM EBITDA

(USDm)

Net Debt

(USDm)

Net

Leverage

LTM FCF

(USD m)

Number of

Stores

Est. Average

Square Feet

per Store

99 Cents Only Stores Available Consumer Discretionary 65440KAB2 11.0 250 15-Dec-19 Sr Unsecured Caa3 Caa3 88.0 18.3 84.3 4.5% 50 943 18.7 (12) 390 16,000

Albertsons Companies Available Consumer Staples 013104AF1 7.5 650 1-Aug-29 Sr Unsecured WR WR 85.3 9.6 83.1 2.6% - - - - - - - - -

Albertsons Companies Available Consumer Staples 013104AL8 8.0 400 1-May-31 Sr Unsecured WR WR 87.3 9.7 87.2 0.1% - - - - - - - - -

Albertsons Companies Available Consumer Staples 01310QCZ6 6.5 15 10-Apr-28 Sr Unsecured WR WR 76.9 10.2 76.9 0.0% - - - - - - - - -

Albertsons Companies Available Consumer Staples 01310QCH6 7.1 20 22-Jul-27 Sr Unsecured WR WR 81.3 10.2 81.3 0.0% - - - - - - - - -

Albertsons Companies Available Consumer Staples 01310QCK9 7.2 10 23-Jul-27 Sr Unsecured WR WR 81.3 10.2 81.3 0.0% - - - - - - - - -

BI-LO Available Consumer Staples 088609AA0 8.6 497 15-Sep-18 Sr Unsecured Ca Ca 32.0 - 32.0 0.0% 300 1,419 4.7 - - -

Bon-Ton Stores Available Consumer Discretionary 09776NAF9 8.0 350 15-Jun-21 2nd lien Ca Ca 30.8 53.6 37.0 -16.6% 92 986 10.7 (14) 263 -

Claire's Stores Available Consumer Discretionary 179584AQ0 7.8 217 1-Jun-20 Sr Unsecured C C - - - - 201 2,087 10.4 0 2,710 -

Claire's Stores Available Consumer Discretionary 179584AM9 9.0 1125 15-Mar-19 1st lien Caa3 Caa3 63.8 51.0 62.3 2.4% 201 2,087 10.4 0 2,710 -

Claire's Stores Available Consumer Discretionary 179584AP2 6.1 210 15-Mar-20 1st lien Caa3 Caa3 57.0 33.5 57.0 0.0% 201 2,087 10.4 0 2,710 -

Claire's Stores Available Consumer Discretionary 179584AL1 8.9 222 15-Mar-19 2nd lien C C 10.0 282.4 10.0 0.0% 201 2,087 10.4 0 2,710 -

David's Bridal Available Consumer Discretionary 23306BAA6 7.8 270 15-Oct-20 Sr Unsecured Caa3 Caa3 53.3 34.7 54.3 -1.8% 80 728 9.1 - - -

Gibson Brands Available Consumer Discretionary 37476RAA5 8.9 375 1-Aug-18 Secured Ca Ca 84.3 38.2 82.9 1.7% - 50 - 457 9.1 - - - -

GNC Holdings Inc Available Consumer Discretionary 36191GAB3 1.5 288 15-Aug-20 Sr Unsecured - - 42.9 36.4 58.5 -26.7% 247 1,426 5.8 149 3,513 -

Guitar Center Available Consumer Discretionary 402040AJ8 9.6 325 15-Apr-20 Sr Unsecured Caa3 Caa3 65.0 31.7 62.0 4.8% - - 6.2 - - -

Guitar Center Available Consumer Discretionary 402040AH2 6.5 615 15-Apr-19 1st lien Caa1 Caa1 93.5 11.8 93.0 0.5% - - 6.2 - - -

Hot Topic Available Consumer Discretionary 441339AA6 9.3 355 15-Jun-21 1st lien B3 B3 74.8 19.5 79.45 -5.9% - - 4.9 - - -

Iconix Brand Group Available Consumer Discretionary 451055AF4 1.5 348 15-Mar-18 Sr Subordinated - - 82.0 74.7 84.8 -3.2% 157 1,266 8.1 120 - -

J. Crew Available Consumer Discretionary 16961UAA4 7.8 1 1-May-19 Sr Unsecured WR WR 71.0 30.3 71.0 0.0% 150 1,693 11.3 105 575 -

J.C.Penney Available Consumer Discretionary 708160BS4 7.4 313 1-Apr-37 Sr Unsecured B3 B3 63.5 12.4 60.5 5.0% 833 4,361 5.2 407 - -

J.C.Penney Available Consumer Discretionary 708130AC3 6.4 388 15-Oct-36 Sr Unsecured B3 B3 59.0 11.9 59.0 0.0% 833 4,361 5.2 407 - -

Neiman Marcus Available Consumer Discretionary 640204AB9 7.1 125 1-Jun-28 1st lien Caa1 Caa1 63.0 13.9 63.0 0.0% 413 4,736 11.5 (78) 86 -

Neiman Marcus Available Consumer Discretionary 570254AA0 8.0 960 15-Oct-21 Sr Unsecured Caa3 Caa3 58.0 25.8 58.5 -0.9% 413 4,736 11.5 (78) 86 -

Neiman Marcus Available Consumer Discretionary 570254AB8 8.8 600 15-Oct-21 Sr Unsecured Caa3 Caa3 53.8 30.8 55.0 -2.3% 413 4,736 11.5 (78) 86 -

Nine West Available Consumer Discretionary 48020UAA6 6.9 28 15-Mar-19 Sr Unsecured Ca Ca - - - - 94 1,500 16.0 - - -

Nine West Available Consumer Discretionary 480081AK4 6.1 250 15-Nov-34 Sr Unsecured Ca Ca 14.0 44.0 12.5 12.0% 94 1,500 16.0 - - -

Nine West Available Consumer Discretionary 65442LAA0 8.3 367 15-Mar-19 Sr Unsecured Ca Ca 11.3 306.4 18.5 -39.2% 94 1,500 16.0 - - -

PetSmart Available Consumer Discretionary 04021LAA8 7.1 1900 15-Mar-23 Sr Unsecured B3 B3 74.0 14.3 71.4 3.6% 944 77 0.1 0 1,333 -

PetSmart Available Consumer Discretionary 716768AD8 8.9 650 1-Jun-25 Sr Unsecured B3 B3 76.0 14.2 74.5 2.0% 944 77 0.1 0 1,333 -

Rite Aid Corporation Available Consumer Staples 767754AR5 6.9 128 15-Dec-28 Sr Unsecured Caa1 Caa1 79.5 10.0 69.8 14.0% 904 6,940 7.7 (61) 4,536 9,900

Sears Holdings Available Consumer Discretionary 812404BE0 6.5 48 1-Dec-28 Sr Unsecured Ca Ca - - - - (1,143) 4,617 - (179) 1,430 -

Sears Holdings Available Consumer Discretionary 812404BK6 7.0 91 1-Jun-32 Sr Unsecured Ca Ca 50.9 15.6 50.9 0.0% (1,143) 4,617 - (179) 1,430 -

Sears Holdings Available Consumer Discretionary 812404AX9 7.5 69 15-Oct-27 Sr Unsecured Ca Ca 50.9 18.4 50.9 0.0% (1,143) 4,617 - (179) 1,430 -

Sears Holdings Available Consumer Discretionary 812350AF3 8.0 625 15-Dec-19 Sr Unsecured Ca Ca 55.9 41.8 60.9 -8.3% (1,143) 4,617 - (179) 1,430 -

Sears Holdings Available Consumer Discretionary 812350AE6 6.6 304 15-Oct-18 2nd lien Caa3 Caa3 77.8 38.9 79.5 -2.2% (1,143) 4,617 - (179) 1,430 -

The Fresh Market Available Consumer Staples 35804HAA4 9.8 800 1-May-23 1st lien Caa1 Caa1 56.3 24.9 57.0 -1.3% 191 (29) - 55 169 -

Tops Holding II Corporation Available Consumer Staples 89078XAB3 8.8 9 15-Jun-18 Sr Unsecured Caa3 Caa3 92.3 19.2 92.3 0.0% 113 849 7.5 (2) 172 -

Tops Holding II Corporation Available Consumer Staples 89078YAA3 8.0 560 15-Jun-22 Secured Caa1 Caa1 56.5 24.4 60.3 -6.2% 113 849 7.5 (2) 172 -

Toys "R" Us Available Consumer Discretionary 892335AL4 7.4 208 15-Oct-18 Sr Unsecured WR WR 32.6 - 35.5 -8.3% 660 4,897 7.4 40 1,691 -

Vitamin Shoppe Consumer Discretionary 462044AF5 9.1 121 15-Dec-21 Sr Unsecured - - - - - - 77 137 1.8 2 775 3,495

Vitamin Shoppe Consumer Discretionary 92849EAB7 2.3 144 1-Dec-20 Sr Unsecured - - 63.3 18.9 65.3 -3.1% 77 137 1.8 2 775 3,495

An Acuris Company

Loans

11 December 2017

Distressed Retail Watchlist

Additions:

Belk Inc

Petco Animal Supplies

Save-A-Lot Inc

Distressed Retail Watchlist12/11/2017

DISTRESSED LOAN WATCHLIST

Company Name Research SectorLCDIX

(Markit ID)Priority Facility

Initial Libor

Spread (bps)

Outstanding

(USD m)Maturity Current Bid

Current

Offer

Previous

Bid

Previous

OfferPrice % Δ

LTM EBITDA

(USDm)

Net Debt

(USDm)Leverage

LTM FCF

(USD m)

Number of

Stores

Est. Average

Square Feet

per Store

99 Cents Only Stores Available Consumer Discretionary LX123550 First Lien RC 400 160 8-Apr-21 71 72 71 72 0.0% 50 943 18.7 (12) 390 16,000

99 Cents Only Stores Available Consumer Discretionary LX133189 First Lien TLB2 350 614 11-Jan-19 95 97 95 97 0.0% 50 943 18.7 (12) 390 16,000

Academy Limited Available Consumer Discretionary LX144914 First Lien TLB 400 1825 1-Jul-22 79 81 74 75 7.9% 333 1,744 5.2 - - -

Ascena Retail Group Available Consumer Discretionary LX146680 First Lien TLB 450 1800 21-Aug-22 84 86 86 87 -1.8% 532 1,299 2.4 165 4,807 -

Belk Inc Available Consumer Discretionary LX148858 First Lien TL 475 1500 12-Dec-22 83 84 80 81 3.6% 450 0 4.9 - 297 -

Bluestem Group Consumer Discretionary LX141710 First Lien TL 750 559 6-Nov-20 69 72 69 72 -0.5% 58 358 6.2 110 - -

Charlotte Russe Available Consumer Discretionary LX129507 First Lien TL 550 150 22-May-19 40 45 42 47 -4.2% 47 212 4.5 - - -

Charlotte Russe Available Consumer Discretionary LX135749 First Lien TL 500 80 22-May-19 40 45 42 47 -4.2% 47 212 4.5 - - -

Charming Charlie Inc Consumer Discretionary LX134561 First Lien TLB 800 150 24-Dec-19 3 5 35 40 -90.0% - - 4.7 - - -

Claire's Stores Available Consumer Discretionary LX126138 First Lien RC - 115 20-Sep-17 59 65 59 65 0.0% 201 2,087 10.4 0 2,710 -

David's Bridal Available Consumer Discretionary LX126185 First Lien TLB 375 520 11-Oct-19 85 87 83 84 2.9% 80 728 9.1 - - -

Eddie Bauer Consumer Discretionary LX136832 First Lien TL 525 225 1-Jul-20 63 68 63 68 0.0% - - 9.5 - - -

Freedom Group Limited - LX123710 First Lien Hybrid TL 425 330 19-Apr-19 63 65 71 74 -12.1% - - - - - - - - -

FULLBEAUTY Brands Consumer Discretionary LX148068 First Lien TL 475 820 14-Oct-22 59 61 60 63 -1.6% 136 1,158 8.5 - - -

FULLBEAUTY Brands Consumer Discretionary LX148069 Second Lien TL 900 345 13-Oct-23 28 33 40 43 -26.2% 136 1,158 8.5 - - -

J. Crew Available Consumer Discretionary LX168242 First Lien TL 322 1,185 5-Mar-21 59 61 56 57 5.0% 150 1,693 11.3 105 575 -

J. Crew Available Consumer Discretionary LX135737 First Lien TL 300 1,567 5-Mar-21 53 55 53 55 0.0% 150 1,693 11.3 105 575 -

Lands' End Consumer Discretionary LX136612 First Lien RC 175 - - 80 81 79 81 1.0% 49 400 8.2 (23) 230 -

Lands' End Consumer Discretionary LX135757 First Lien TLB 325 515 2-Apr-21 84 86 83 85 1.0% 49 400 8.2 (23) 230 -

Neiman Marcus Available Consumer Discretionary LX135908 First Lien TL 325 2943 25-Oct-20 81 82 79 80 3.5% 413 4,736 11.5 (78) 86 -

Nine West Available Consumer Discretionary LX135620 First Lien TL 375 445 8-Oct-19 90 95 84 86 8.3% 94 1,500 16.0 - - -

Nine West Available Consumer Discretionary LX135814 Unsecured TL 525 300 8-Jan-20 38 40 34 36 12.8% 94 1,500 16.0 - - -

NYDJ APPAREL LLC Consumer Discretionary LX134129 First Lien TL 600 150 6-Jan-20 63 68 63 68 0.0% - - - - - -

NYDJ APPAREL LLC Consumer Discretionary LX134255 First Lien RC 600 12.5 6-Jan-19 53 58 53 58 0.0% - - - - - -

NYDJ APPAREL LLC Consumer Discretionary LX165845 First Lien TL 600 67.7 6-Jan-20 27 31 27 31 0.0% - - - - - -

Petco Animal Supplies Consumer Discretionary LX158994 First Lien TLB1 300 2499.75 26-Jan-23 79 80 78 79 1.1% - - - - - -

PetSmart Available Consumer Discretionary LX144026 First Lien RC - 50 11-Mar-20 82 83 78 79 5.5% 944 77 0.1 0 1,333 -

PetSmart Available Consumer Discretionary LX155570 First Lien TLB 300 4246 11-Mar-22 86 87 82 83 5.2% 944 77 0.1 0 1,333 -

Save-A-Lot Inc Consumer Staples LX157028 First Lien TL 600 740 5-Dec-23 79 81 85 87 -6.4% - - - - 431 -

Spencer Gifts Consumer Discretionary LX145715 Second Lien TL 825 135 29-Jun-22 50 60 50 60 0.0% - - - - 5.2 - - - -

Spencer Gifts Consumer Discretionary LX145716 First Lien TLB1 425 333 16-Jul-21 70 74 69 74 -0.1% - - - - 5.2 - - - -

Sports Authority - LX116854 First Lien TLB 600 300 16-Nov-17 1 3 1 3 0.0% 100 1,065 10.7 - - -

Things Remembered Consumer Discretionary LX154941 First Lien RC 800 20 28-Feb-19 27 47 27 47 0.0% - - - - - -

TOMS Shoes Available Consumer Discretionary LX141608 First Lien TL 550 307 30-Oct-20 49 51 49 51 0.0% 27 336 12.4 - - -

Totes Isotoner Corporation (aka

Indra Holdings)Consumer Discretionary LX136854 First Lien TL 425 245 1-May-21 59 61 59 63 -1.5% - - 13.1 - - -

Toys "R" Us Available Consumer Discretionary LX141526 First Lien TLB4 875 1026 24-Apr-20 50 52 53 54 -3.8% 660 4,897 7.4 40 1,691 -

Toys "R" Us Available Consumer Discretionary LX119275 First Lien TLB2 375 400 25-May-18 32 35 35 38 -8.1% 660 4,897 7.4 40 1,691 -

Toys "R" Us Available Consumer Discretionary LX123555 First Lien TLB3 375 225 25-May-18 32 35 35 38 -9.3% 660 4,897 7.4 40 1,691 -

Toys "R" Us Available Consumer Discretionary LX141526 First Lien TLB4 875 1026 24-Apr-20 50 52 51 54 -2.9% 660 4,897 7.4 40 1,691 -

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Disclaimer

We have obtained the information provided in this report in good faith from sources that we consider to be reliable, but we do not independently verify the information. The information is not intended to provide tax, legal or investment advice. We shall not be liable for any mistakes, errors, inaccuracies or omissions in, or incompleteness of, any information contained in this report. All such liability is excluded to the fullest extent permitted by law. Data has been derived from company reports, press releases, presentations and Debtwire intelligence.