Rite Aid cuts spread on $500 million term loan to Libor plus 387.5 bps

By Sara Rosenberg

New York, June 13 - Rite Aid Corp. reduced pricing on its $500 million eight-year second-lien term loan (B3/B-) to Libor plus 387.5 basis points from Libor plus 425 bps, according to a market source.

As before, the loan has a 1% Libor floor, a par offer price and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, GE Capital Markets and Goldman Sachs Bank (USA) are the lead banks on the deal.

Proceeds will be used to fund a tender offer for the company's $500 million 7½% senior secured notes due 2017.

Other funds for the refinancing will come from available cash and/or borrowings under the company's revolving credit facility.

The tender offer will expire on July 5.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.