By Paul A. Harris
St. Louis, June 30 - Rite Aid Corp. priced a $470 million issue of 10 3/8% eight-year senior secured second-lien notes (B3/B+/BB-) at 90.588 to yield 12¼% on Monday, according to an informed source.
The yield was printed on top of price talk.
The source said that the deal was well-oversubscribed.
Citigroup was the bookrunner for the Securities and Exchange Commission-registered deal, which generated $425.76 million of proceeds. Banc of America Securities LLC was the co-manager.
The Camp Hill, Pa., national drugstore chain will used the proceeds to fund the tender for $360 million of its 8 1/8% senior secured notes due 2010, $200 million of its 7½% senior secured notes due 2015 and $150 million of its 9¼% senior notes due 2013.
| Issuer: | Rite Aid Corp.
|
| Face amount: | $470 million
|
| Proceeds: | $425.76 million (approximate)
|
| Maturity: | July 15, 2016
|
| Security description: | Senior secured second-lien notes
|
| Bookrunner: | Citigroup
|
| Co-manager: | Banc of America Securities LLC
|
| Coupon: | 10 3/8%
|
| Price: | 90.588
|
| Yield: | 12¼%
|
| Spread: | 828 bps
|
| Call features: | Make-whole at Treasuries plus 75 bps until July 15, 2012, the callable at 105.188, 102.594, par on and after July 15, 2014
|
| Equity clawback: | Until July 15, 2011 for 35% at 110.375
|
| Trade date: | June 30
|
| Settlement date: | July 9
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 12¼% area
|
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