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Rite Aid receives no additional 9 3/8% notes, wraps tender offer
By Susanna Moon
Chicago, June 1 - Rite Aid Corp. said holders tendered $296.3 million principal amount, or 73.2%, of its $405 million outstanding principal amount of 9 3/8% senior notes due 2015 in its tender offer that ended at midnight ET on May 31.
All of those notes were tendered by the consent payment deadline, midnight ET on May 14, and were accepted for purchase on May 15, according to an 8-K filing with the Securities and Exchange Commission.
The company called the remaining $108.7 million of notes for redemption on June 15. As previously noted, the company said it will redeem the notes at 102.344 plus accrued interest up to but excluding the redemption date.
Rite Aid said on May 15 that it received the needed consents to amend the 9 3/8% notes and executed a supplemental indenture, which became operative on the early settlement date.
The company solicited consents to amend the notes to eliminate or modify restrictive covenants and events of default and needed consents from holders of a majority of the notes.
Rite Aid closed its $421 million add-on of 9¼% senior notes due 2020 on May 15 and used the proceeds to fund the tender offer.
The total purchase price was $1,028.75 per $1,000 principal amount, including a consent payment of $30.00 for notes tendered by the early deadline.
Holders also received accrued interest up to but excluding the settlement date.
The offer was conditioned on Rite Aid completing one or more financing transactions with enough proceeds to fund the purchase.
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 call 212 430-3774) was the information agent.
Rite Aid is a Camp Hill, Pa.-based chain of drugstores.
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