Rite Aid seeks $1 billion revolving credit facility for refinancing

By Sara Rosenberg

New York, June 8 - Rite Aid Corp. is working on getting a new $1 billion senior secured revolving credit facility due September 2012, according to an 8-K filed with the Securities and Exchange Commission.

So far, the company has received $900 million in commitments towards the new revolver.

The revolver is part of a plan to refinance 2010 debt maturities that includes the company's recently syndicated $525 million term loan due June 2105 and a proposed offering of $400 million of senior secured notes due 2016.

If the new revolver is in an amount less than $1 billion, Rite Aid may seek to offer additional notes or other debt.

The notes are not contingent upon the entry into the new revolver, which is subject to successful syndication and satisfaction of customary closing conditions.

Proceeds from the new revolver and the notes will be used to repay amounts outstanding and replace the company's existing $1.75 billion revolver due September 2010.

Proceeds from the new term loan, which is scheduled to close on June 10 but already freed up for trading at the end of last week, will be used to refinance the $145 million tranche 1 term loan also due September 2010, and repay and cancel a portion of the commitments outstanding under the existing revolver.

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

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