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Rite Aid completes debt refinancing
July 2nd, 2013
CAMP HILL, Pa. – Rite Aid Corp. has wrapped up transactions aimed at refinancing more than $800 million of debt.
The drug chain said Tuesday that it has closed an offering of $810 million of its 6.75% unsecured senior notes due in 2021. The debt offering was announced June 18.
Along with cash and/or borrowings from Rite Aid's credit revolver, the proceeds of the offering funded a cash tender offer for the company's $810 million of 9.5% senior notes maturing in 2017.
As of July 1, $739.6 million of the $810 million in 9.5% notes were tendered, according to Rite Aid. The tender offer is slated to expire on July 16. The company said that although it has called the remaining 9.5% notes for redemption, holders of the 9.5% notes may still validly tender them before the expiration date.
Rite Aid said the refinancing transactions extend the maturity of a portion of its outstanding debt and reduce interest costs.
On June 21, Rite Aid announced that it completed an offering of $500 million in senior secured notes initiated earlier in the month as part of a series of debt refinancing transactions.