Rite Aid plans debt offering

Camp Hill, Pa. Rite Aid Corp. said Monday it plans to sell $650 million in new debt and take out a new credit facility.

Rite Aid said it aims to sell $650 million in senior notes due in 2020. It will use the proceeds and available cash to pay back a $648 million term loan due in 2015. The company is working to amend or replace its current $1.18 billion credit facility, which is due in 2012, with a new one due in 2015.

Rite Aid said it has obtained commitments for $1.12 billion of that total as of Friday. It said the new credit facility will have reduced pricing.

The company had $6.1 billion in long-term debt as of May 29.