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CAMP HILL, Pa. — Rite Aid Corp. has completed debt refinancing transactions initiated earlier this month.
The drug chain said Thursday that it has amended its revolving credit facility and refinanced certain terms loans and senior secured notes, extending the maturity of part of its debt and reducing interest costs.
Rite Aid reported that it expects to record a loss on debt modifications of $117 million related to the refinancing transactions while generating annual cash interest savings of about $45 million.
Specifically, Rite Aid amended and restated its existing credit revolver, including an increase in the commitments under the facility to $1.795 billion and an extension of the maturity to February 2018. The company also refinanced term loans of $1.038 billion due in 2014 and $331.7 million due in 2018 with the proceeds from a new $1.161 billion term loan maturing in 2020 under its first-lien credit facility, together with borrowings under the amended revolver.
Through cash tender offers, Rite Aid also refinanced $410 million of 9.750% senior secured notes and $470 million of 10.375% senior secured notes, both due in 2016. The company refinanced the 9.750% notes with proceeds from the new $1.161 billion term loan and the 10.375% notes with with proceeds from a new $470 million term loan due in 2020 under its new second-lien credit facility, along with borrowings under the revolver.
The transactions also included a cash tender offer for $180.3 million of 6.875% senior debentures maturing in 2013, which was financed with available cash.
