Rite Aid $115 million mandatory convertible talked at 5.0%-5.5%, up 20%-24%

By Ronda Fears

Nashville, Aug. 16 - Rite Aid Corp. launched a $115 million breakfast deal in the convertible market, offering up a dose of mandatory preferreds talked to yield 5.0% to 5.5% with a 20% to 24% initial conversion premium.

The issue was slated to price after Tuesday's market close.

Citigroup Global Markets and JPMorgan Securities are joint bookrunners of the deal, with Citigroup as stabilization agent. It is an off-the-shelf offering.

The 3.25-year convertible will have a 180% soft call trigger and cash acquisition protection for holders.

Proceeds, along with cash on hand, will be used to take out its 8% series F cumulative convertible pay-in-kind convertible preferreds at 105 plus accrued interest.

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