Rite Aid Successfully Completes Refinancing of Its Revolving Credit Facility
CAMP HILL, Pa.--(BUSINESS WIRE)--Dec 20, 2018--Rite Aid Corporation (NYSE: RAD) today announced that it has entered into a new senior secured credit agreement, consisting of a $2.7 billion senior secured asset-based revolving credit facility and a $450 million “first-in, last out” senior secured term loan facility. The new $3.15 billion credit facilities refinance Rite Aid’s existing $2.7 billion senior secured asset-based revolving credit facility that was scheduled to mature in January 2020. The new facilities extend the company’s debt maturity profile and provide additional liquidity. The new senior secured credit facilities mature in December 2023, subject to an earlier maturity on December 31, 2022 if Rite Aid has not repaid or refinanced its existing 6.125% Senior Notes due 2023 prior to such date. The Company’s new revolving credit facility will bear interest at a rate of LIBOR plus 125 to 175 basis points (or an alternate base rate plus 25 to 75 basis points), depending on availability under the revolving facility. The Company’s new senior secured term loan facility will bear interest at a rate of LIBOR plus 300 basis points (or an alternate base rate plus 200 basis points).
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Bank, National Association, Citigroup Global Markets Inc., BMO Harris Bank, N.A., Capital One, National Association, Fifth Third Bank, ING Capital LLC, MUFG Union Bank, N.A., PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc., acted as joint lead arrangers and joint bookrunners for the new facilities. Bank of America, N.A. is acting as administrative agent and collateral agent under the new credit facilities.
Rite Aid Corporation (NYSE: RAD) is one of the nation’s leading drugstore chains with fiscal 2018 annual revenues of $21.5 billion. The company also owns EnvisionRxOptions, a multi-faceted healthcare and pharmacy benefit management (PBM) company. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.
Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission (the “SEC”), which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181220005880/en/
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: CONVENIENCE STORE DISCOUNT/VARIETY HEALTH PHARMACEUTICAL RETAIL
SOURCE: Rite Aid Corporation
Copyright Business Wire 2018.
PUB: 12/20/2018 04:15 PM/DISC: 12/20/2018 04:15 PM