Rite Aid increases borrowing capacity to $3 billion

Camp Hill, Pa. - Rite Aid Corp. has increased its borrowing capacity to $3 billion as part of a refinancing of an 8% senior secured notes that are now due in January 2020. Borrowing capacity will increase to $3.7 billion when the notes are paid.



Rite Aid expects, at current rates, to save approximately $20 million in annual interest expense, based on a $3 billion facility, and approximately $50 million in annual interest expense, based on a $3.7 billion facility and the redemption of the notes.



The company used borrowings under the amended and extended senior secured credit facility to repay and retire all of the $1.147 billion outstanding under its Tranche 7 Senior Secured Term Loan due 2020, along with associated fees and expenses.



The refinancing was led by Wells Fargo Capital Finance acting as syndication agent and a joint lead arranger and joint bookrunning manager; Citicorp North America Inc. acting as administrative agent and joint lead arranger and joint bookrunning manager; and Merrill Lynch, Pierce, Fenner & Smith Inc., GE Capital Markets Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and MUFG Union Bank N.A. acting as joint lead arrangers and joint bookrunning managers.