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Rite Aid gets approval of $604 million seller financing for MedImpact
By Sarah Lizee
Olympia, Wash., Dec. 28 – Rite Aid Corp. received approval from the U.S. Bankruptcy Court for the District of New Jersey to provide $604 million in seller financing to MedImpact Healthcare Systems, Inc., according to an 8-K filed with the Securities and Exchange Commission.
As previously reported, Rite Aid recently canceled an auction for its Elixir assets and is seeking approval of a $575 million sale to stalking horse bidder MedImpact. A sale hearing is scheduled for Jan. 9.
In connection with the sale, Rite Aid sought approval to provide seller financing to MedImpact to fund a substantial portion of the purchase price of the Elixir sale transaction.
The seller financing provides for Rite Aid to serve as a lender to borrower affiliates of MedImpact in a $604 million term loan facility.
Bank of America, NA is the administrative agent, swing line lender and a letter-of-credit issuer.
The seller financing will be secured by liens on MedImpact collateral.
Pricing on the facility is SOFR+10 basis points CSA plus 725 bps.
The issue price is 94.
The facility is set to mature on March 31, 2028 with a springing maturity to Sept. 15, 2026 unless the existing revolver and term loans have been repaid or extended to a maturity date no earlier than Sept. 30, 2027 on or prior to Dec. 31, 2025.
The facility amortizes at 5% per annum, payable quarterly.
The Elixir sale does not contemplate the sale of any of the debtors’ retail pharmacy locations or related leases.
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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