Rite Aid completes tender offer for 7½% notes; remainder discharged

By Jennifer Chiou

New York, July 8 - Rite Aid Corp. announced the close of its tender offer under which it accepted for purchase tenders for about $419.2 million, or 83.85%, of its $500 million principal amount of 7½% senior secured notes due 2017.

The tender offer expired at midnight ET on July 5.

The tenders were received by 5 p.m. ET on June 20, the consent payment deadline for the company's tender offer for any and all of the notes.

Settlement took place on June 21.

The remaining $80.8 million principal amount was previously called for redemption on July 22 and was satisfied and discharged by Rite Aid on July 8, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, Rite Aid also solicited consents to amend the notes to eliminate or modify covenants and events of default.

The total purchase price was $1,029.50 for each $1,000 principal amount of notes tendered by the consent payment deadline. The total payment included a consent payment of $30.00 per $1,000 principal amount.

The company also paid accrued interest up to but excluding the applicable settlement date.

Rite Aid will redeem the remaining notes at 102.5 plus accrued interest to the redemption date.

The tender offer and consent solicitation were conditioned on Rite Aid completing a refinancing with enough proceeds to fund the offer. The company launched a $500 million second-lien term loan on June 7, the proceeds of which, along with cash and borrowings under its revolving credit facility, were used to fund the tender offer.

Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) was the dealer manager. Global Bondholder Services Corp. (866 804-2200 or banks and brokers 212 430-3774) was the information agent.

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

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