Rite Aid prorates oversubscribed tender offer at early deadline

Chicago, June 28 – Rite Aid Corp. announced the early results of its capped tender offer for up to $150 million aggregate amount of notes from four series, according to a press release.

The offer was oversubscribed at the early deadline of 5 p.m. ET on June 27.

From the four series, Rite Aid is only accepting notes from the first three series with a pro rata scaling factor applied to tendered notes from two of those three series.

The results of the tender offer are the following:

• $114,942,000 accepted of the $458,603,000 tendered of the $600 million outstanding 7½% senior secured notes due 2025 (Cusips: 767754CK8, U76659AX6) for a total consideration of $870 per note (there was a $100 million subcap on just this series, a subcap that is being maintained with a 25.1% proration factor);

• All of the $26,955,000 tendered of the $29,001,000 outstanding 6 7/8% debentures due 2028 (Cusips: 767754AR5, U76659AF5) for a total consideration of $570 per note;

• $51,695,000 accepted of the $58,708,000 tendered of the $237,386,000 outstanding 7.7% notes due 2027 (Cusip: 767754AJ3) for a total consideration of $670 per note (accepted with an 88.1% proration factor); and

• None of the $558,784,000 tendered of the $849,918,000 outstanding 8% senior secured notes due 2026 (Cusips: 767754CL6, U76659AY4) for what would have been a total consideration of $850 per note.

Interest will also be paid to the applicable settlement date.

The early settlement date is June 29. The company will use cash to fund the offer, including a draw on its revolving credit facility.

As the offer is oversubscribed, no more notes will be accepted for purchase after the early deadline.

The offers technically expire at 11:59 p.m. ET on July 12. Final settlement would have been July 14.

UBS Securities LLC is the dealer manager (888 719-4210, 203 719-4210).

Global Bondholder Services Corp. is the tender and information agent (855 654-2014, 212 430-3774, contact@gbsc-usa.com, https://www.gbsc-usa.com/riteaid).

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

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