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Rite Aid Selling Preferred Stock

The drugstore chain will offer 4.6 million convertible preferred shares.
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Rite Aid

(RAD) - Get Rite Aid Corporation Report

plans to offer 4.6 million convertible preferred shares and apply the proceeds to redeem a series of preferreds already outstanding.

The new convertible shares have a liquidation preference of $25 a share. Rite Aid will grant the underwriters an overallotment option for up to 600,000 additional preferred shares.

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The drugstore chain will use the net proceeds, along with its available cash, to redeem its 8% series F cumulative convertible pay-in-kind preferred stock.

Citigroup and J.P. Morgan led the offering. Shares of Rite Aid, based in Camp Hill, Pa., were losing 12 cents to $4.48.