Duane Reade calls notes, convertibles following buyout by Walgreen

By Angela McDaniels

Tacoma, Wash., April 13 - Duane Reade, Inc. has called its notes following the acquisition of its parent company, Duane Reade Holdings, Inc., by Walgreen Co., according to an 8-K filing with the Securities and Exchange Commission.

The company's 11¾% senior secured notes due 2015, 9¾% senior subordinated notes due 2011 and convertible notes due 2022 will be redeemed on May 10.

The indentures for the 11¾% notes and 9¾% notes have been discharged, and Duane Reade deposited enough funds with the trustee to repay the notes, including a make-whole payment of approximately $82 million for the 11¾% notes and a redemption penalty of approximately $1.2 million for the 9¾% notes.

In addition, borrowings under the company's credit agreement with Bank of America, NA as administrative agent were repaid in full except for $7.35 million of letters of credit. These will remain outstanding and will be deemed to have been issued by Bank of America as the issuing bank under an existing credit facility with Walgreen.

Funds for the redemptions and paydown were provided by Walgreen, which acquired Duane Reade from Oak Hill Capital Partners, LP.

Duane Reade and Walgreen are drugstore chains based in New York and Deerfield, Ill., respectively.

© 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.