Rite Aid Corporation (NYSE: RAD) announced today its intention to offer $400.0 million aggregate principal amount of a new series of senior notes due 2021 (the “Notes”). The Notes will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed by substantially all of Rite Aid’s subsidiaries.
Rite Aid intends to use the net proceeds of the offering of the Notes, together with available cash and/or borrowings under Rite Aid’s revolving credit facility, to redeem a corresponding amount of its outstanding 9.5% senior notes due 2017. Rite Aid’s results of operations, including net income and earnings per share, and guidance could be affected by fees, expenses and charges related to the refinancing transactions.
The Notes and the related subsidiary guarantees will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The Notes and the related subsidiary guarantees have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This press release also does not constitute a notice of redemption under the optional redemption provisions of the indenture governing any series of notes.
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.