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Rite Aid completes debt buyback program

Retail pharmacy chain to use proceeds from 6.75% note sale to repurchase $810 million in debt sold at 9.5% rate

CAMP HILL, Pa. — Rite Aid has finished a buyback program for more than $800 million worth of debt using proceeds from a sale of notes that allow the company to borrow at a lower interest rate, the retail pharmacy chain said Tuesday.

Rite Aid said it has finished a cash offer for $810 million in senior notes with a 9.5% interest rate due 2017, funded with proceeds from a previous sale of $810 million worth of 6.75% senior notes due 2021.

The company said that as of 5 p.m. Monday, $739.6 million worth of the 9.5% notes were put up for sale. The new offer will expire at midnight on July 16.

 

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