Retail News Breaks Archives
Rite Aid wraps up debt offering
May 15th, 2012
CAMP HILL, Pa. – Rite Aid Corp. has closed an offering of $421 million in senior notes due in 2020 as part of a debt refinancing initiated earlier this month.
The drug chain said Tuesday that the proceeds from the offering of 9.25% senior notes due in 2020, along with cash, are being used to fund a tender offer for $405 million of its 9.375% senior notes due in 2015.
Rite Aid is calling for redemption any of the notes not tendered in the offer, which expires May 31. The company said that as of midnight May 14, $296.3 million of the notes, or about 73.2%, had been tendered.
The debt offering announced May 3 represents an add-on to Rite Aid's issuance in February of $481 million in 9.25% senior unsecured notes due in 2020. The proceeds of those notes were used to help fund the company's purchase of about $405 million of 8.625% senior notes due in 2015.
Rite Aid's announcement of the new debt refinancing led Moody's Investors Service to upgrade the retailer's Corporate Family Rating (CFR) to Caa1 from Caa2 and Fitch Ratings to raise its rating outlook for the chain from "negative" to "stable."