Rite Aid seeks $1.175 billion revolver; deal nearly fully syndicated

By Sara Rosenberg

New York, Aug. 9 - Rite Aid Corp. plans on getting a new $1.175 billion revolving credit facility due in 2015, and, as of Friday, there were already $1.115 billion in commitments toward the deal, according to a news release.

Proceeds will be used to amend or replace the company's existing $1.175 billion revolver due in 2012.

Pricing on the new facility is expected to be lower than pricing on the existing facility.

The new revolver maturity can be accelerated to April 18, 2014 if the company does not repay, refinance or otherwise extend the remaining term loans under its senior credit facility prior to that time.

In addition, Rite Aid is seeking amendments to its senior credit facility to provide more flexibility under the covenants.

The company also announced on Monday plans to repay its $648 million tranche 4 term loan due in 2015 in full using cash on hand and proceeds from a $650 million senior secured notes offering.

The notes offering is not subject to the entry into the revolver or the related credit facility amendment, but the new revolver and amendment are contingent on completion of the notes.

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

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