Rite Aid Corp. has completed the issuance of $481 million in senior unsecured notes due in 2020, the proceeds from which will be used to help refinance debt.


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Rite Aid closes offering of new senior notes

February 27th, 2012

CAMP HILL, Pa. – Rite Aid Corp. has completed the issuance of $481 million in senior unsecured notes due in 2020, the proceeds from which will be used to help refinance debt.

The drug chain said Monday that it has closed its offering, announced earlier this month, of 9.25% senior notes due 2020. Along with cash, the proceeds are being used to fund Rite Aid’s cash tender offer, also made this month, for its $459 million in 8.625% senior notes due 2015.

As of midnight on Feb. 24, $404.8 million aggregate principal amount of the outstanding senior notes due 2015 had been tendered, or about 88.2% of the notes. according to Rite Aid. The tender offer of $996.25 per $1,000 of face value expires March 13, and those who tender their notes by that date will also receive a $30 consent payment.

The company also said Monday that it has called for redemption all of the senior notes maturing in 2015 that will remain outstanding after the close the tender offer at a price equal to 102.156% of their face amount. Redemption of the remaining notes is slated to take place on March 28.

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