By Rebecca Melvin
New York, May 21 - Rite Aid Corp. priced $150 million of seven-year convertible notes to yield 8.5% with an initial conversion premium of 27.5%, according to company release.
The notes priced at the rich end of talk which was for a coupon of 8.5% to 9%, with an initial conversion premium of 22.5% to 27.5%.
Citigroup was sole bookrunner of the notes, for which there is an option to purchase up to an additional $8 million in notes to cover over-allotments.
The notes are non-callable for life, and there are no puts.
Rite Aid intends to use proceeds to redeem $150 million of its 6.125% senior notes due 2008.
Based in Camp Hill, Pa., Rite Aid operates a chain of retail drugstores.
| Issuer: | Rite Aid Corp.
|
| Issue: | Convertible notes
|
| Amount: | $150 million
|
| Greenshoe: | $8 million
|
| Maturity: | May 15. 2015
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion premium: | 27.5%
|
| Conversion ratio: | 386.3614
|
| Conversion price: | $2.59
|
| Call: | Non callable for life
|
| Puts: | No, except for change of control
|
| Takeover protection: | Yes, standard
|
| Dividend protection: | Yes, standard
|
| Bookrunner: | Citigroup
|
| Price talk: | 8.5%-9%, up 22.5%-27.5%
|
| Pricing date: | May 22
|
| Settlement: | May 29
|
| Distribution: | Off shelf
|
| Stock symbol: | NYSE: RAD
|
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