News

Rite Aid completes refinancing

BY Michael Johnsen

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.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Wal-Mart, CVS, Walgreens make top 10 of 100 top retailers list

BY Alaric DeArment

WASHINGTON Even in a shaky economy, the biggest retailers in the country have remained strong, according to the National Retail Federation, whose STORES magazine released its Top 100 Retailers List on July 1.

Wal-Mart remains the No. 1 retailer, with $378.8 billion in revenues for 2007. Second was The Home Depot, with $77.3 billion.

Some drug stores have also made the top 10, as consumers continue to purchase health and wellness products, regardless of economic hardship. These include CVS—which moved up six spaces since 2006 with its acquisition of Caremark and $76.3 billion in revenues—and Walgreen’s, which made seventh place with $53.76 billion.

Other retailers that made the top 10 include Target, in sixth place with $63.36 billion in revenues, and SUPERVALU, at No. 10 with $44 billion.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Harris Teeter raises more than $67,000 for the AHA

BY Alaric DeArment

MATTHEWS, N.C. Customer donations at Harris Teeter grocery stores to the American Heart Association have raised more than $67,000.

The chain solicited donations of $1 or $5 from customers, raising a total of $67,091. It has raised $100,000 for the AHA over the last two years.

Harris Teeter operates stores in North Carolina, South Carolina, Tennessee, Florida, Virginia, Georgia, Maryland and Delaware.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES