Rite Aid further extends consent solicitation for 8 1/8%, 7½% notes

By Angela McDaniels

Tacoma, Wash., April 2 - Rite Aid Corp. said the consent solicitation for its $360 million 8 1/8% senior secured notes due 2010 and its $200 million 7½% senior secured notes due 2015 will now expire at 5 p.m. ET on April 11.

The deadline was moved so the consent solicitation will now expire after Rite Aid announces its financial results for the fiscal fourth quarter ended March 1, according to a company news release. The results will be released on April 10.

This is the second extension of the consent solicitation. The deadline was originally set for March 28 and was later changed to April 1.

The consents would allow Rite Aid to eliminate a discrepancy between the debt incurrence covenant and the lien covenant in the indentures, according to a previous news release. The company said the amendments would not increase the total amount of debt it is allowed to incur but would instead allow it to secure $320 million of debt that it is already permitted to incur under these indentures and is permitted to incur and secure under its other existing indentures.

Rite Aid is offering a consent fee of $5 per $1,000 principal amount of notes.

The consent solicitation began on March 17 and is conditioned on the receipt of consents from holders of at least a majority of both series of notes.

Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the information agent, and Citi (800 558-3745 or 212 723-6106) is the solicitation agent.

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

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