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Rite Aid Completes Debt Refinancing Transaction

Stocks in this article: RAD

Rite Aid Corporation (NYSE: RAD) today 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. Although Rite Aid has called the notes that remain outstanding following the tender offer for redemption (as discussed below), holders of such notes may still validly tender their notes prior to the expiration date. For more information regarding the tender offer and related consent solicitation, see the offer to purchase.

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