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Rite Aid tenders, seeks consents for $500 million 7½% notes due 2017
By Susanna Moon
Chicago, June 7 - Rite Aid Corp. said it began a cash tender offer for its $500 million principal amount of 7½% senior secured notes due 2017.
As part of the tender offer, Rite Aid is soliciting consents to amend the notes to eliminate or modify covenants and events of default, according to a company press release.
The total purchase price will be $1,029.50 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 20, the consent payment deadline.
The total payment includes a consent payment of $30.00 per $1,000 principal amount.
Holders who tender their notes after the consent date will receive $999.50 per $1,000 of notes.
The tender offer will expire at midnight ET on July 5.
The company also will pay accrued interest up to but excluding the settlement date.
Holders who tender their notes will be deemed to consent to all of the proposed amendments and holders may not deliver consents without tendering their notes.
Rite Aid said it plans to redeem any notes not tendered in the offer and call the remaining notes as early as the early settlement date.
The tender offer and consent solicitation is conditioned on Rite Aid completing refinancing with enough proceeds to fund the offer.
Funding for the offer will come from proceeds of a new $500 million second-lien term loan, along with cash and borrowings under Rite Aid's revolving credit facility, the release noted.
Global Bondholder Services Corp. (866 804-2200 or banks and brokers 212 430-3774) is the information agent. Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) is the dealer manager.
Rite Aid is a drugstore chain based in Camp Hill, Pa.
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