New Issue: Rite Aid prices $650 million 10-year secured notes at par to yield 8%

By Paul A. Harris

St. Louis, Aug. 9 - Rite Aid Corp. priced a $650 million issue of 10-year senior secured first-lien notes (confirmed B3/expected B+) at par to yield 8% on Monday, according to an informed source.

The yield printed on top of the price talk.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities and Credit Suisse Securities were the joint bookrunners for the quick-to-market deal.

The Camp Hill, Pa.-based drugstore chain will use the proceeds to repay its tranche four term loan.

Issuer:	Rite Aid Corp.
Amount:	$650 million
Maturity:	Aug. 15, 2020
Securities:	Senior secured first-lien notes
Bookrunners:	Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities, Credit Suisse Securities
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	518 bps
Call features:	Make-whole call at Treasuries plus 75 bps until Aug. 15, 2015, then callable at 104.0, 102.667, 101.333, par on and after Aug. 15, 2018
Equity clawback:	35% at 108.0 until Aug. 15, 2013
Trade date:	Aug. 9
Settlement date:	Aug. 16
Ratings:	Moody's: B3
	Standard & Poor's: expected B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8% area
Marketing:	Quick to market

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