CAMP HILL, Pa. Rite Aid on Wednesday reported that it has completed its previously announced refinancing that includes a new $350 million senior secured term loan due in 2014 and $470 million of new 10.375 percent senior secured notes due in 2016.
The retail pharmacy chain said it used the proceeds from the refinancing to fund tender offers and consent solicitations of the company's 8.125 percent senior secured notes due in 2010, 9.25 percent senior notes due in 2013 and 7.5 percent senior secured notes due in 2015.
"This refinancing gives us greater flexibility to support our business plans in an environment that includes worries about a lengthy recession and continued uncertainty of the capital markets," stated Mary Sammons, Rite Aid chairman, president and chief executive officer.
Rite Aid announced that approximately $348.9 million aggregate principal amount of its 8.125 percent senior secured notes due 2010 (96.9 percent of the total outstanding), approximately $144 million of its 9.25 percent senior notes due 2013 (95.9 percent) and approximately $199.6 million aggregate principal amount of its 7.5 percent senior secured notes due 2015 (99.7 percent) have been tendered and accepted for payment.
Rite Aid also delivered notice that it has called for redemption and discharge of all remaining 2015 notes.
The refinancing increases interest expense by approximately $5 million and increases loss due to debt modifications and retirements by approximately $35 million. As a result, the company adjusted its fiscal forecast to be a net loss between $300 million and $415 million and diluted loss per share between $.39 and $.52 per share as compared to previous guidance of a net loss of between $260 million and $375 million or a loss per diluted share of $.34 to $.48.
The company said that charges from the refinancing had no impact on its previously announced sales, same-store sales and adjusted EBITDA guidance.