Rite Aid planning to refinance revolver, term loan by early 2010

By Jennifer Lanning Drey

Portland, Ore., Nov. 21 - Rite Aid Corp. expects to refinance its revolving credit facility and tranche 1 term loan with a combination of a new revolver, term loan and senior secured notes by early 2010, according to slides accompanying a presentation given by Rite Aid chief financial officer Frank Vitrano on Friday.

In the meantime, the company believes it has adequate liquidity to execute its business plan, Vitrano said during the Bank of America Credit Conference in Orlando, Fla.

Rite Aid had $549 million available under its revolver at the end of the second quarter of fiscal 2009 and now has the ability to borrow the full availability of the $1.75 billion revolver.

Rite Aid had total debt of $6.7 billion and cash of $170 million at the end of the second quarter of fiscal 2009.

The company is focused on managing expenses, reducing capital expenditures by about $50 million and improving working capital, Vitrano said.

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

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