CAMP HILL, Pa. — Rite Aid will refinance part of its debt, the retail pharmacy chain announced.
The company said the refinancing would involve more than $2 billion worth of debt, including its $1.039 billion Tranche 2 Term Loan due 2014 with the proceeds of a new term loan, together with borrowings under an amended credit facility; and cash tender offers for its $410 million aggregate principal amount of 9.750% Senior Secured Notes due 2016, $470 million aggregate principal amount of 10.375% Senior Secured Notes due 2016, and $180.3 million aggregate principal amount of 6.875% Senior Debentures due 2013, with proceeds from new first and second lien term loans, together with borrowings under the amended revolving credit facility and available cash. The company said it hoped to lower interest expense.
Rite Aid said it had not determined the amount of the amended revolving credit facility or new term loans and that it had signed commitments for a $1.5 billion revolving credit facility, but that its results of operations and guidance would likely be affected by fees, expenses and charges related to the refinancing.
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