Rite Aid has $191 million outstanding borrowings under credit facility

By Aleesia Forni

Columbus, Ohio, Dec. 15 - Rite Aid Corp. had $191 million outstanding under its $1,175,000,000 senior secured credit facility as of Nov. 26.

Total debt net of invested cash was higher by $62.7 million from last year's third quarter and $92.2 million higher than year-end.

"The increase in debt was driven by higher revolver borrowing as a result of our inventory position, chief financial officer Frank G. Vitrano said during the company's third-quarter fiscal 2012 earnings conference call.

Outstanding letters of credit totaled $134.4 million, and the company had $851 million of liquidity at quarter-end.

Net cash used in investing activities for the quarter was $57.5 million, compared to $29.4 million last year.

"We expect free cash flow [to be] slightly positive for the year," Vitrano added.

Rite Aid also saw its fourth consecutive quarter of adjusted EBITDA growth, with $221.5 million.

"The results were driven by favorable sales trend, stabilizing gross margin trends and continued expense control," Vitrano said.

Net loss for the quarter was $52 million, compared to last year's third-quarter net loss of $79.1 million.

This improvement was driven in part by higher adjusted EBITDA, lower depreciation and amortization expense and lower interest expense.

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

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