Rite Aid Completes Amendment and Extension of Existing Credit Facility
January 13 2015 - 4:15PM
Business Wire
Rite Aid Corporation (NYSE: RAD) today announced the completion
of an amendment and extension of its existing senior secured credit
facility, including an increased borrowing capacity of up to $3.0
billion, or up to $3.7 billion when the company repays its 8.00%
Senior Secured Notes due 2020 in full (whether at maturity or
pursuant to an early redemption) and an extension of the maturity
to January 2020. The company expects, at current rates, to save
approximately $20.0 million in annual interest expense, based on a
$3.0 billion facility, and approximately $50.0 million in annual
interest expense, based on a $3.7 billion facility and the
redemption of its 8.00% Senior Secured Notes due in 2020.
The company used borrowings under the amended and extended
senior secured credit facility to repay and retire all of the
$1.147 billion outstanding under its Tranche 7 Senior Secured Term
Loan due 2020, along with associated fees and expenses.
The refinancing was led by Wells Fargo Capital Finance acting as
syndication agent and a joint lead arranger and joint bookrunning
manager; Citicorp North America, Inc. acting as administrative
agent and joint lead arranger and joint bookrunning manager; and
Merrill Lynch, Pierce, Fenner & Smith Incorporated, GE Capital
Markets, Inc., Goldman Sachs Bank USA, Credit Suisse Securities
(USA) LLC and MUFG Union Bank, N.A. acting as joint lead arrangers
and joint bookrunning managers.
Rite Aid Corporation is one of the nation's leading drugstore
chains with nearly 4,600 stores in 31 states and the District of
Columbia and fiscal 2014 annual revenues of $25.5 billion.
Information about Rite Aid, including corporate background and
press releases, is available through the company's website at
www.riteaid.com.
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties that
are described in Item 1A (Risk Factors) of the company’s most
recent Annual Report on Form 10-K and in other documents that it
files or furnishes with the Securities and Exchange Commission,
which you are encouraged to read. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
indicated or anticipated by such forward-looking statements.
Accordingly, you are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they
are made. Rite Aid expressly disclaims any current intention to
update publicly any forward-looking statement after the
distribution of this release, whether as a result of new
information, future events, changes in assumptions or otherwise.
Rite Aid cannot assure you if or when it will retire its 8.0%
Senior Secured Notes due 2020 prior to their maturity.
Rite Aid CorporationINVESTORS:Matt Schroeder,
717-214-8867investor@riteaid.comorMEDIA:Susan Henderson,
717-730-7766
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