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Rite Aid plans $400 million debt offering
June 17th, 2013
CAMP HILL, Pa. – Rite Aid Corp. has announced plans to offer $400 million in unsecured senior notes due 2021.
The drug chain said Monday that the proceeds of the debt offering, along with cash and/or borrowings via its revolving credit facility, would be used to redeem a corresponding amount of its outstanding 9.5% senior notes maturing in 2017.
Rite Aid added that its results of operations, including net earnings and earnings per share, and its guidance could be affected by fees, expenses and charges related to the refinancing transactions.
The move marks Rite Aid's second refinancing announcement this month. On June 7, the retailer initiated a cash tender offer for its $500 million of 7.5% senior secured notes due in 2017, to be funded with the proceeds from a new $500 million second-lien term loan and cash and/or borrowings under its credit revolver.
In announcing that transaction, Rite Aid also reported that it expects to post net earnings for its fiscal 2014 first quarter, which would mark the drug chain's third straight profitable quarter.