Rite Aid launches $350 million term loan

By Sara Rosenberg

New York, June 12 - Rite Aid Corp. held a conference call at 2 p.m. ET Thursday to launch a proposed $350 million senior secured tranche 3 term loan due June 4, 2014, according to a market source.

Citigroup and Bank of America are the lead banks on the deal, with Citigroup the left lead.

The term loan is talked at Libor plus 225 basis points with a 3% Libor floor and an original issue discount of 94, the source said.

The new term loan is permitted under the accordion feature in the company's existing senior secured credit facility.

Proceeds will be used to help fund the previously announced offers to purchase and the consent solicitations related to the company's $360 million 8.125% senior secured notes due 2010, $200 million 7.5% senior secured notes due 2015 and $150 million 9.25% senior notes due 2013.

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

© 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.