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Rite Aid completes $500 million debt refinancing

BY Alaric DeArment

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.

 

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Dollar General honored with Company of the Year in Retail award

BY Jason Owen

GOODLETTSVILLE, Tenn. — Dollar General was recognized as Company of the Year in Retail with a Gold Stevie award at the 11th Annual American Business Awards earlier this week in Chicago in recognition of the company’s position in the retail sector.

“Dollar General is honored to receive the company of the year recognition in retail from the American Business Awards,” said Rick Dreiling, Dollar General’s chairman and CEO. “This recognition is reflective of the dedication of more than 95,000 Dollar General employees to serve our customers by helping them save time and money everyday.”

The American Business Awards are the nation’s premier business awards program, whose purpose is to demonstrate and honor outstanding achievements and positive contributions of organizations and business people worldwide. With more than 3,000 nominations, Stevie Award winners were selected by more than 320 executives nationwide who participated in the judging process this year.

“This year’s American Business Awards was outsized in every way,” said Michael Gallagher, Stevie Awards founder and president. “More entries and more judges than ever before, and I’d have to say the most impressive collection of nominations we’ve ever received. We congratulate all of this year’s Stevie winners for their outstanding work.”

Additional details about The American Business Awards and the lists of Stevie Award winners announced on June 17 are available at StevieAwards.com/ABA.


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Report finds mobile coupons drive in-store purchases

BY Jason Owen

AUSTIN, Texas — RetailMeNot.com, a U.S. digital coupon website, today announced the results of a mobile commerce survey reviewing consumers’ current mobile commerce behaviors. The results were presented at the Internet Retailer Conference & Exhibition in Chicago on June 7.

An overview of the survey revealed that the vast majority of consumers surveyed have moved beyond making simple phone calls and sending text messages via their mobile device to having it become their personal research tool. In fact, almost 8-in-10 respondents reported using their mobile devices to do some sort of research online in the most recent month. More than half of consumers surveyed (54%) used their mobile device while buying something in the month prior to taking the survey in April 2013.

The survey showed deal-seeking behavior has become the norm within the purchase cycle. One-third (33%) of consumers surveyed have conducted searches on a mobile device for coupons online, while over a quarter (26%) bought something in a physical store using a coupon found on a mobile device. Of those consumers who made purchases in-store using a digital coupon, 90% had done so in the last month.

Furthermore, relevant offers seemed to further incentivize consumers to buy. More than half of respondents (51%) indicated that they are more likely to enter a store and buy something if they receive a coupon on their mobile device while near that store. If the consumer received a coupon on their mobile device while already inside the store, more than 6-in-10 consumers (63%) indicated that they would be more likely to buy something.

"There’s no doubt that today’s consumers are more empowered than ever by smartphone technology, and retailers can recognize and enable those behaviors or lose business to competitors who understand the power of mobile marketing," said John Faith, SVP external affairs for RetailMeNot.


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