Rite Aid plans to offer $400M senior secured notes

Camp Hill, Pa. Rite Aid Corp. plans to offer $400 million senior secured notes due 2016 as part of a refinancing plan, according to Associated Press.

Rite Aid, which is planning to shut down as many as 117 stores over the next year, previously announced that it wanted to refinance some debt due September 2010. Aside from the notes offering, the refinancing includes a $525 million term loan due June 2015.

The loan's proceeds will help refinance a $145 million term loan due September 2010 and will also help to repay and cancel part of the outstanding commitments on Rite Aid's $1.75 billion senior secured revolving credit facility. Remaining funds will be put toward fees and other expenses, the company said.

The refinancing also includes plans for a $1 billion senior secured revolving credit agreement due September 2012. Rite Aid has secured $900 million in commitments to date.