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Rite Aid completes tender for 9½% notes; redemption set for Aug. 1
By Jennifer Chiou
New York, July 17 - Rite Aid Corp. announced the close of its cash tender offer for any and all of its $810 million of 9½% senior notes due 2017.
The company received no additional tenders on top of the $739.6 million principal amount, or about 91.31%, of the outstanding amount obtained by the consent payment deadline of 5 p.m. ET on July 1.
Those notes were settled on July 2.
As previously reported, Rite Aid secured the needed consents to amend the notes to eliminate or modify some covenants and events of default and has executed a supplemental indenture to the notes.
The remaining $70.4 million of notes was already called for redemption at 103.167% of par plus accrued interest to but excluding the redemption date on Aug. 1. Those notes were discharged on July 17.
Holders who tendered their notes were deemed to consent to the proposed amendments, and holders could not deliver consents without tendering their notes, as previously noted.
The tender offer ended at midnight ET on July 16. The offer began on June 18.
Holders who tendered their notes by the consent date received the total purchase price of $1,037.80 per $1,000 principal amount of notes. The total payment included a $30.00 consent payment.
Holders also received accrued interest up to but excluding the settlement date.
The tender offer and consent solicitation were contingent upon Rite Aid completing a refinancing with enough proceeds to help fund the offer.
Rite Aid closed its $810 million principal amount of 6¾% senior notes due 2021 on July 2.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106 collect) was the dealer manager for the tender offer and consent solicitation. Global Bondholder Services Corp. (866 804-2200 or 212 430-3774 for banks and brokers) was the information agent.
Rite Aid is a drugstore chain based in Camp Hill, Pa.
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