The investors that plan to buy 99-Cent Only Stores on Wednesday sold a $250 million notes offering to help finance the $1.6 billion acquisition of the discount retail chain.

Affiliates of Ares Management LLC and the Canada Pension Plan Investment Board that the entity created to handle the merger priced a private placement of 11-percent senior notes due 2019. Other terms were not disclosed

The Los Angeles global asset manager and the Toronto, Ontario-based pension plan reached a deal with the Commerce company in October to take it private. 99-Cent Only operates 291 stores in California, Arizona, Nevada and Texas.

The offering is expected to close on December 29, 2011. 99-Cent Only shares closed unchanged on the New York Stock Exchange Wednesday at $21.87.