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Rite Aid Completes Debt Refinancing Transaction

Date: Jun 24, 2013 @ 07:53 AM
Filed Under: Industry News

Rite Aid Corporation announced the completion of a portion of its previously announced debt refinancing transactions that extends the maturity on a portion of Rite Aid’s outstanding indebtedness and lowers interest expense. The completed refinancing transaction consisted of a cash tender offer for any and all of Rite Aid’s $500.0 million aggregate principal amount of 7.5% Senior Secured Notes due 2017 that is being funded with the net proceeds from a new $500.0 million second lien term loan, together with available cash and/or borrowings under Rite Aid’s revolving credit facility.

As part of the tender offer, Rite Aid solicited consents for amendments that would eliminate or modify certain covenants, events of default and other provisions contained in the indenture governing the notes. Rite Aid announced today that it has received the requisite consents to execute a supplemental indenture to effect the proposed amendments.

As of the consent payment deadline at 5 p.m., Eastern Time, on June 20, 2013, approximately $419.2 million aggregate principal amount of the notes were tendered (representing approximately 83.85% of the outstanding notes). Rite Aid has exercised its option to accept for payment and settle the tender offer with respect to all of the notes that were validly tendered at, or prior to, the consent payment deadline upon which the supplemental indenture implementing the proposed amendments became effective. Settlement of the purchase of these notes occurred today, June 21, 2013.

The tender offer will expire at midnight, Eastern Time, on July 5, 2013, unless extended or earlier terminated.

Rite Aid also delivered notice that it had called for redemption all of the notes that remain outstanding following consummation of the tender offer. The notes that remain outstanding will be redeemed at a price equal to 102.500% of their face amount, plus accrued and unpaid interest to, but not including, the date of redemption. Redemption of the remaining notes will occur on July 22, 2013.

Rite Aid Corporation is one of the nation’s leading drugstore chains with more than 4,600 stores in 31 states and the District of Columbia and fiscal 2013 annual revenues of $25.4 billion.

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