Rite Aid refinances most of 2010 debt

Camp Hills, Pa. Rite Aid Corp. said Monday it completed refinancing of most of the debt that was set to come due in September 2010.

Rite Aid had a $145 million loan and $1.75 billion credit facility maturing in September 2010. Due to the refinancing, the company said its only significant debts due before 2012 are its borrowings under its accounts receivable securitization programs. Those borrowings are due in September.

CEO Mary Sammons said the refinancing gives Rite Aid more time and cash to implement plans to improve store performance. The company is attempting to improve sales and reduce its debts, which stood at $5.69 billion at the end of May.

"As a result of the refinancing, we are in a much stronger financial position," Sammons said.

Rite Aid said it took out $525 million in loans due 2015 and issued $410 million in debt due 2016, both of which were used to repay older loans. It also took out a new $1 billion credit facility expiring 2012. When Rite Aid reported its first first-quarter earnings last Wednesday, it said it had received commitments for $960 million out of that $1 billion.