Rite Aid greenshoe fully exercised, lifts 8.5% seven-year convertibles to $158 million

By Devika Patel

Knoxville, Tenn., June 2 - Underwriters for Rite Aid Corp.'s 8.5% seven-year convertible notes exercised their over-allotment option in full for $8 million more of the notes, increasing the size of the issue to $158 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, Rite Aid priced the notes at par on May 22 through bookrunner Citigroup.

The notes have a conversion price of $2.59, which equals a conversion ratio of 386.3614, and a conversion premium of 27.5%.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.