New Issue: Rite Aid upsizes to $270 million, prices 10¼% 10-year notes at 99.242 to yield 10 3/8%

By Paul A. Harris

St. Louis, Oct. 19 - Rite Aid Corp. priced an upsized $270 million issue of 10¼% 10-year senior secured notes (Caa2/B-/) at 99.242 to yield 10 3/8% on Monday, according to a market source.

The yield printed at the tight end of the 10 3/8% to 10½% price talk.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities were joint bookrunners for the quick-to-market deal, which was upsized from $250 million.

The Camp Hill, Pa.-based drugstore company will use the proceeds to refinance its first- and second-lien accounts receivable securitization facilities due September 2010.

Issuer:	Rite Aid Corp.
Face amount:	$270 million, increased from $250 million
Proceeds:	$267.953 million (approximate)
Maturity:	Oct. 15, 2019
Securities:	Senior secured notes
Bookrunners:	Citigroup Global Markets Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities
Coupon:	10¼%
Price:	99.242
Yield:	10 3/8%
Spread:	700 bps
Call protection:	Make-whole call at Treasuries plus 75 bps until Oct. 15, 2014, then callable at a premium
Trade date:	Oct. 19
Settlement date:	Oct. 26
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S
Price talk:	10 3/8% to 10½%

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