Rite Aid begins consent solicitation for 8 1/8%, 7½% notes

By Angela McDaniels

Tacoma, Wash., March 17 - Rite Aid Corp. began soliciting consents to amend the indentures for its 8 1/8% senior secured notes due 2010 and its 7½% senior secured notes due 2015, according to a company news release.

As of Monday, $360 million of the 8 1/8% notes and $200 million of the 7½% notes were outstanding.

The consents would allow Rite Aid to eliminate a discrepancy between the debt incurrence covenant and the lien covenant in the indentures. The company said the amendments would not increase the total amount of debt it is allowed to incur but would instead allow it to secure $320 million of debt that it is already permitted to incur under these indentures and is permitted to incur and secure under its other existing indentures.

The consent solicitation will expire at 5 p.m. ET on March 28.

Rite Aid is offering a consent fee of $5 per $1,000 of principal amount of notes.

The consent solicitation is conditioned on the receipt of consents from holders of at least a majority of both series of notes.

Global Bondholder Services Corp. is the information agent (866 873-6300 or 212 430-3774), and Citi (800 558-3745 or 212 723-6106) is the solicitation agent.

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

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