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Rite Aid Corporation (NYSE: RAD) announced today the terms of an upsized offering of $810.0 million aggregate principal amount of 6.75% senior notes due 2021 (the “Notes”). The size of the offering is $410.0 million more than previously announced. The Notes will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed by substantially all of Rite Aid’s subsidiaries. The offering is expected to close on July 2, 2013, subject to customary closing conditions.
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 pay the consideration, accrued and unpaid interest and related fees and expenses in connection with a tender offer for any and all of its outstanding 9.5% senior notes due 2017 and related consent solicitation. Rite Aid expects to call for redemption any 9.5% senior notes due 2017 not tendered in the tender offer. 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 have been 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 also does not constitute a notice of redemption under the optional redemption provisions of the indenture governing any series of notes, nor does it constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.