Rite Aid greenshoe exercised, raising convertible mandatory preferreds to $125 million

By Caroline Salls

Pittsburgh, Feb. 8 - Rite Aid Corp. said the underwriters of its recent offering of 7% series E mandatory convertible preferred stock exercised the $10 million over-allotment option in full, raising the size of the deal to $125 million.

The Camp Hill, Pa., drugstore chain originally priced $115 million of the securities after the close on Jan. 25 to yield 7% with a 50% initial conversion premium.

JPMorgan Securities Inc. was the bookrunner for the registered deal.

Proceeds will be used to redeem the company's $103 million of series D cumulative convertible pay-in-kind preferreds. Any remaining net proceeds will be used to purchase additional shares of series D preferred stock or for working capital and general corporate purposes.

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