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Rite Aid increases first-lien term loan size to roughly $1.13 billion
By Sara Rosenberg
New York, Feb. 7 - Rite Aid Corp. upsized its seven-year first-lien term loan (B1/B+) to $1,125,000,000 from $900 million, according to a market source.
Pricing on the first-lien loan remained at Libor plus 300 basis points with a 1% Libor floor and a par offer price, the source said. Earlier pricing had been flexed from Libor plus 325 bps with a 1.25% Libor floor and an original issue discount of 991/2.
The first-lien term loan still has 101 soft call protection for six months.
Rite Aid's now $3.32 billion credit facility, up from $3,095,000,000, also includes a $1,725,000,000 five-year ABL revolver (B1) - of which $1.5 billion is committed - and a $470 million 71/2-year second-lien term loan (B3/B-).
Pricing on the revolver ranges from Libor plus 225 bps to 275 bps based on excess availability.
Second-lien term loan pricing is Libor plus 475 bps with a 1% Libor floor and a par offer price. This flexed from Libor plus 500 bps with a 1.25% floor and a discount of 99 earlier in the syndication process.
The second-lien term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, GE Capital Markets, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal, with Wells Fargo the left lead on the revolver and first-lien term loan, and Citigroup the left lead on the second-lien term loan. Citigroup is the administrative agent on the entire deal.
Proceeds will be used to refinance an existing $1.04 billion term loan due 2014 and fund cash tender offers for $410 million of 9¾% senior secured notes due 2016, $470 million of 10 3/8% senior secured notes due 2016 and $180.3 million of 6 7/8% senior debentures due 2013.
The tender offers expire on Feb. 28.
Rite Aid is a Camp Hill, Pa.-based drugstore chain.
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