CAMP HILL, Pa. — Rite Aid has completed an effort to refinance half a billion dollars in debt, the retail pharmacy chain said Friday, fresh off its announcement the day before of its third consecutive profitable quarter.
Rite Aid said it completed a portion of transactions to extend the maturity of part of its outstanding indebtedness, which it said would lower interest expenses. The company has about $6 billion in debt, according to its fiscal year 2013 annual report.
The transaction consisted of a cash offer for $500 million in 7.5% senior secured notes due 2017, funded by proceeds from a new $500 million second-term loan and cash and borrowings from credit. As of 5 p.m. Thursday, about $419.2 million of the $500 million had been put up for sale.
The new offer will expire at 12 a.m. Eastern Time on July 5, the company said. A previously announced offering of $810 million in 6.75% senior notes due 2021 is expected to close on July 2.