Rite Aid Surges on Debt-Cutting Plan
Shares in drugstore chain
Rite Aid
(RAD) - Get Report
surged Wednesday, a day after the company announced the latest step in its extensive debt reduction plan.
Shares were up 83 cents, or 10.5%, at $8.69, following an announcement Tuesday that Rite Aid would sell $302.4 million of common stock to raise money to refinance its debt, part of a previously announced $3 billion debt refinancing.
Shares in the company have risen steadily this year, as investors have slowly gained confidence in the company's
ability to get its finances in order. That has been a concern since accounting irregularities forced the company to announce a $1.6 billion earnings revision last summer. The stock is up more than 230% on the year and is closing in on its 52-week high of $9.09.
The company, based in Camp Hill, Pa., closed 98 stores during its recently completed quarter and now operates 3,600 stores in 30 states.