Rite Aid begins tender offer for 8 5/8% notes, plans to call remainder

By Susanna Moon

Chicago, Feb. 14 - Rite Aid Corp. said it began a cash tender offer and consent solicitation for its outstanding $459 million principal amount of 8 5/8% senior notes due 2015.

Holders will receive the total purchase price of $1,026.25 for each $1,000 principal amount of notes tendered by midnight ET on Feb. 24, the consent payment deadline. The total payment includes a consent premium of $30 per $1,000 of notes tendered by the early deadline.

The offer will expire at midnight ET on March 13. Holders who tender after the consent deadline will receive $996.25 per $1,000 of notes.

The company also will pay accrued interest to the settlement date, which is expected to be the business day following the respective deadlines.

The company is soliciting consents to amend the notes to eliminate or modify covenants and events of default.

Holders who tender their notes will be deemed to consent to the proposed amendments, and holders may not deliver consents without tendering their notes.

Rite Aid said it expects to call any remaining notes after the tender offer.

Global Bondholder Services Corp. (866 470-4300 or banks and brokers 212 430-3774) is the information agent. Citigroup (800 558-3745 or collect 212 723-6106) is the dealer manager.

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

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