Rite Aid increases term loan to $225 million

By Sara Rosenberg

New York, Feb. 3 - Rite Aid Corp. upsized its second-lien accounts receivable securitization term loan due Sept. 14, 2010 to $225 million from $200 million, according to a market source.

In addition, call protection finalized at non-callable for six months with a make-whole provision, 101 for the following six months, and par thereafter, the source said.

As was previously reported, pricing on the term loan is Libor plus 1,200 basis points with a 3% Libor floor, and an original issue discount of 97.

Citigroup is the lead arranger and bookrunner on the deal.

Security is second-priority liens on eligible third-party pharmaceutical receivables securing an existing facility.

Proceeds will be used to provide funding for the acquisition of receivables and/or participation interests therein.

Rite Aid is a Camp Hill, Pa.-based operator of a chain of retail drugstores.

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