Rite Aid amends, upsizes senior credit facility to $3.28 billion

By William Gullotti

Buffalo, N.Y., Dec. 2 – Rite Aid Corp. amended and upsized its senior secured credit agreement with Bank of America, NA as administrative agent and collateral agent on Dec. 1, according to an 8-K filing with the Securities and Exchange Commission.

The amendment upsized the senior secured asset-based revolving credit facility to $2.85 billion from $2.8 billion and the first-in, last-out senior secured term loan facility to $425 million from $350 million.

The agreement’s interest basis was also updated to SOFR from Libor.

The amended revolver will bear interest at SOFR plus a margin ranging from 125 basis points to 175 bps, depending on availability under the revolver. There is also a commitment fee ranging from 25 bps to 37.5 bps, also determined by the revolver’s remaining availability.

The amended senior secured term loan facility will bear interest at SOFR plus 300 bps.

There is a $100 million sublimit on swingline loans and a $600 million sublimit on letters of credit.

BofA Securities, Inc., Wells Fargo Bank, NA, Capital One, NA, BMO Harris Bank NA, Fifth Third Bank, NA, MUFG Bank Ltd., PNC Capital Markets LLC, Truist Securities, Inc. and ING Capital LLC acted as joint lead arrangers and joint bookrunners for the amended credit facilities.

Wells Fargo is also syndication agent.

Capital One, BMO Harris, Fifth Third, MUFG, PNC, Truist and ING acted as co-documentation agents.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

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