CAMP HILL, Pa. — Rite Aid Corp. has more than doubled a debt offering initiated this week.
The company said late Tuesday it’s now offering $810 million of 6.75% unsecured senior notes due in 2021, $410 million more than a senior notes offering announced Monday.
Rite Aid said it aims to use the proceeds plus available cash and/or borrowings under its credit revolver to fund a cash tender offer to buy its outstanding $810 million in 9.5% senior notes due in 2017. The drug chain plans to call for redemption any of the 9.5% senior notes not tendered.
The new notes offering is slated to close on July 2, subject to customary closing conditions.
In another refinancing move earlier in June, Rite Aid commenced a cash tender offer for $500 million of 7.5% senior secured notes due in 2017.
