Rite Aid completes second priority accounts receivable securitization term loan
CAMP HILL, Pa. Rite Aid on Feb. 19 announced that it has completed its previously announced second priority accounts receivable securitization term loan for $225 million, which is $25 million more than previously announced. The second priority accounts receivable securitization loan will be used to replace the previously announced $200 million step down of availability on the company’s existing accounts receivable securitization facility, which was renewed on Jan. 22, 2009 and extended through Jan. 21, 2010.
Amounts outstanding under the Second Lien facility are secured by second priority liens on the eligible third party pharmaceutical receivables securing Rite Aid’s existing accounts receivable securitization facility. The Second Lien facility contains terms substantially similar to those governing Rite Aid’s existing accounts receivable securitization facility, other than it has a second priority lien on the pharmaceutical receivables and that it allows only a one-time draw at the time of closing and not drawings on a revolving basis. The Second Lien facility was sold at a discount of 3%, bears interest at a rate of LIBOR plus 12%, with a LIBOR floor of 3%, and will mature on Sept. 14, 2010.
Rite Aid will have access to $345 million of availability under the First Lien facility, which is what the company anticipates its borrowing level to be under that facility. Should the First Lien facility not be renewed following its maturity on January 21, 2010 the company has access to a backstop facility to provide receivable financing to the company until September 2010. The backstop facility is backed by the banks in the existing facility.
Citigroup Global Markets Inc. acted as sole lead arranger and sole bookrunner for the loan.
Supervalu recalls private-label peanut products
MINNEAPOLIS Amid the ongoing recalls of peanut products across the country, a large supermarket operator announced Saturday that it had taken several private-label products off its shelves.
Supervalu said it was recalling trail mix and fruit and nut trail mix products sold under the private labels of Albertsons, Jewel-Osco, ACME and Shaw’s stores.
The move follows recalls of hundreds of products by Peanut Corporation of America, including all products produced at its Plainview, Texas, processing plant.
MinuteClinic joins Health Net Federal Services/TRICARE North
MINNEAPOLIS MinuteClinic, which is owned by CVS Caremark, has become a participating provider in Health Net Federal Services/TRICARE North network for military families.
“We believe MinuteClinic can help to increase access to care and provide cost-savings for families when it’s needed most,” stated Chip Phillips, MinuteClinic president. “We look forward to working with Health Net Federal Services to extend care to TRICARE North beneficiaries through our convenient locations, which include many healthcare centers near military bases and government installations.”
TRICARE is the uninformed services healthcare program for active duty service members and their families, retired service members and their families, members of the National Guard and Reserve and their families, survivors, and others who are eligible.
Nearly 1.5 million TRICARE healthcare beneficiaries now have in-network access to MinuteClinic locations in 13 states: Connecticut; Indiana; Massachusetts; Maryland; Michigan; St. Louis, Mo.-area; North Carolina; New Jersey; New York; Ohio; Pennsylvania; and Virginia.