Rite Aid seeks $145 million asset-based term loan

By Sara Rosenberg

New York, Sept. 27 - Rite Aid Corp. is in market with a $145 million asset-based term loan, according to a market source.

Citigroup is the lead bank on the deal.

Pricing on the asset-based term loan is tied to the company's existing revolving credit facility pricing grid that's based on excess availability, the source said.

Terms on the asset-based term loan, which launched Monday, will be the same as under the company's existing credit agreement, the source added.

Proceeds will be used to reduce revolver borrowings. On Sept. 15, the Camp Hill, Pa., national drugstore chain drew on its revolver to fund the $142 million of required maturities of its 12½% note.

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