New Issue: Rite Aid prices upsized $810 million 6¾% eight-year notes at par

By Paul A. Harris

Portland, Ore., June 18 - Rite Aid Corp. priced an upsized $810 million issue of eight-year senior notes (Caa2/CCC/) at par to yield 6¾% on Tuesday, according to a syndicate source.

The deal was upsized from $400 million.

The yield printed on top of final yield talk. Earlier talk was 6½% to 6¾%.

Citigroup Global Markets Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the joint bookrunners.

The Camp Hill, Pa.-based drugstore chain plans to use the proceeds, including those resulting from the upsizing of the notes issue, to repay its 9½% notes due June 15, 2017 in full.

Issuer:	Rite Aid Corp.
Amount:	$810 million, increased from $400 million
Maturity:	June 15, 2021
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	499 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 15, 2016, then callable at 105.063, 103.375, 101.688, par on and after June 15, 2019
Equity clawback:	35% at 106.75 until June 15, 2016
Change-of-control put:	101%
Trade date:	June 18
Settlement date:	July 2
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	Final talk was 6¾% area, revised from 6½% to 6¾%
Marketing:	Quick to market

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