Rite Aid once more extends consent solicitation for 8 1/8%, 7½% notes

By Angela McDaniels

Tacoma, Wash., April 28 - Rite Aid Corp. said the consent solicitation for its $360 million 8 1/8% senior secured notes due 2010 and its $200 million 7½% senior secured notes due 2015 will now expire at 5 p.m. ET on May 2.

This is the fifth extension of the consent solicitation. The deadline was originally set for March 28 and was later changed to April 1, to April 11, to April 18 and most recently to April 25.

The consents would allow Rite Aid to eliminate a discrepancy between the debt incurrence covenant and the lien covenant in the indentures, according to a previous news release. The company said the amendments would not increase the total amount of debt it is allowed to incur but would instead allow it to secure $320 million of debt that it is already permitted to incur under these indentures and is permitted to incur and secure under its other existing indentures.

Rite Aid is offering a consent fee of $5 per $1,000 principal amount of notes.

The consent solicitation began on March 17 and is conditioned on the receipt of consents from holders of at least a majority of both series of notes.

As previously reported, the company extended the deadline the second time so that the consent solicitation would expire after Rite Aid announced its financial results for the fiscal fourth quarter ended March 1. The results were released on April 10.

Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the information agent, and Citi (800 558-3745 or 212 723-6106) is the solicitation agent.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.