Fitch gives Rite Aid notes B/RR4

Fitch Ratings said it assigned a B/RR4 rating (with recovery prospects of 31% to 50%) to Rite Aid Corp.’s new $1.8 billion 6 1/8% guaranteed senior unsecured notes due April 1, 2023.

Concurrently, the agency downgraded $1.7 billion of the company’s existing guaranteed senior unsecured notes to B/RR4 from B+/RR3.

The notes will be used to finance Rite Aid's $2 billion acquisition of Envision Pharmaceutical Services (EnvisionRx), an independent full-service pharmacy benefit management (PBM) company, which is expected to close by September 2015, subject to regulatory approvals and other customary closing conditions.

If the acquisition is not completed, the new notes could be used to redeem existing debt and have special optional redemption features.

© 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.