Rite Aid Finishing 2010 Debt Refinancing

CAMP Hill, Pa. (TheStreet) -- Rite Aid(RAD Quote) is nearing the completion of a refinancing of its debt due next year.

The drug store announced on Monday that it plans to sell $250 million in senior notes due in 2019. The proceeds will be used to pay back and cancel accounts-receivable scrutinized facilities, and to fund related fees and costs.

Rite Aid will also borrow more money from a $525 million term loan due in 2015 and increase the borrowing capacity of its senior secured revolving credit facility to $1.17 billion from $1 billion.

Once the refinancing is complete, Rite Aid will not owe any money until September 2012. In June, the company completed the refinancing of most of its debt maturities due in September 2010. As of Aug. 29, Rite Aid has about $5.9 billion in debt.

Shares of the company are falling 1.3% to $1.56 in morning trading.

-- Reported by Jeanine Poggi in New York

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