New Issue: Rite Aid prices $150 million 10-year notes to yield 9½%

By Paul A. Harris

St. Louis, May 13 - Rite Aid Corp. price a drive-by offering of $150 million 9¼% senior notes due June 1, 2013 (Caa2/B-) Tuesday at 98.399 to yield 9½%, according to a syndicate source.

Price talk was for a yield in the 9¼% area.

Citigroup was the bookrunner for the Rule 144A deal. JP Morgan and Fleet Securities were co-managers.

Proceeds will be used to repay a portion of the term loan under its senior credit facility and for general corporate purposes, which may include capital expenditures and repayments or repurchases of its outstanding indebtedness.

Issuer:	Rite Aid Corp.
Amount:	$150 million
Maturity:	June 1, 2013
Security description:	Senior notes
Bookrunner:	Citigroup
Co-managers:	JP Morgan, Fleet Securities
Coupon:	9¼%
Price:	98.399
Yield:	9½%
Spread:	588 basis points
Call features:	Callable on June 1, 2008 at 104.625, then at 103.083, 101.542, declining to par on June 1, 2011 and thereafter
Settlement date:	May 20, 2003
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Rule 144A Cusip:	767754BG8
Price talk:	9¼% area

© 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.