Rite-Aid plans investor call Wednesday for $1.22 billion two-part note offering

By Paul A. Harris

St. Louis, May 14 - Rite-Aid Corp. will host an investor call at 11 a.m. ET on Wednesday for its $1.22 billion two-part offering of senior unsecured notes (Caa1/CCC+), according to an informed source.

The Camp Hill, Pa., drugstore chain is in the market with a tranche of 8.5-year notes, which come with four years of call protection, as well as a tranche of 10-year notes, which come with five years of call protection.

Tranche sizes remain to be determined.

Citigroup is the bookrunner for the Rule 144A and Regulation S deal. Wachovia Securities is the co-manager.

Proceeds together with an approximately $75 million draw upon the company's existing senior secured credit facility, a new $1.105 billion term loan and 250 million shares of common stock will be used to fund the acquisition of the Brooks and Eckerd drugstore chains.

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