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Rite Aid Guides $117M Loss on Debt Modifications

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Rite Aid Corporation (NYSE: RAD) today announced the completion of its previously announced debt refinancing transactions that extend the maturity of a portion of its outstanding indebtedness and lower interest expense. The refinancing transactions included:

* the amendment and restatement of Rite Aid's existing revolving credit facility, including an increase in the commitments under the revolving credit facility to $1.795 billion and an extension of the maturity to February 2018; * the refinancing of Rite Aid's $1.038 billion Tranche 2 Term Loan due 2014 and $331.7 million Tranche 5 Term Loan due 2018, each including accrued but unpaid interest, with the proceeds from a new $1.161 billion Tranche 6 Term Loan due 2020 under Rite Aid's first lien credit facility, together with borrowings under the amended revolving credit facility; * the refinancing of, via a cash tender offer, Rite Aid's $410.0 million aggregate principal amount of 9.750% Senior Secured Notes due 2016 with proceeds from the Tranche 6 Term Loan, together with borrowings under the amended revolving credit facility; * the refinancing of, via a cash tender offer, Rite Aid's $470.0 million aggregate principal amount of 10.375% Senior Secured Notes due 2016 with the proceeds from a new $470 million Tranche 1 Term Loan due 2020 under Rite Aid's new second lien credit facility, together with borrowings under the amended revolving credit facility; and * a cash tender offer for Rite Aid's $180.3 million aggregate principal amount of 6.875% Senior Debentures due 2013 with available cash.

Rite Aid expects to record a loss on debt modifications of $117.0 million related to the transactions and expects to have annual cash interest savings of approximately $45.0 million.

Posted-In: News Guidance Financing

 

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