Rite Aid receives final approval of $3.45 billion DIP financing

By Sarah Lizee

Olympia, Wash., Dec. 22 – Rite Aid Corp. has received final approval of $3.45 billion of debtor-in-possession financing, according to an order filed Friday with the U.S. Bankruptcy Court for the District of New Jersey.

The financing is with existing lenders and Bank of America, NA as administrative agent and collateral agent.

The financing consists of a $2.85 billion revolver and a $400 million first-in, last-out term loan.

Proceeds will be used to repay all debt under the company’s existing credit facilities, to fund the Chapter 11 cases, to provide working capital and to make other payments during the proceedings.

The facility is set to mature in one year.

The revolver will bear interest at SOFR plus 325 basis points, and the term loan will bear interest at SOFR plus 525 bps (subject to downward adjustment to 475 bps following certain paydown events).

There is a 1% upfront fee payable at closing.

The company has also lined up a separate $200 million DIP term loan with Bank of America as administrative agent and collateral agent.

Proceeds will be used to fund the cases, make certain other payments and provide working capital.

The facility is set to mature in one year and bear interest at SOFR plus 750 bps.

Rite Aid is a full-service pharmacy with headquarters in Philadelphia. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 23-18993.

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