CAMP HILL, Pa., 2015-1-14 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced the completion of an amendment and extension of its existing senior secured credit facility, including an increased borrowing capacity of up to $3.0 billion, or up to $3.7 billion when the company repays its 8.00% Senior Secured Notes due 2020 in full (whether at maturity or pursuant to an early redemption) and an extension of the maturity to January 2020. The company expects, at current rates, to save approximately $20.0 million in annual interest expense, based on a $3.0 billion facility, and approximately $50.0 million in annual interest expense, based on a $3.7 billion facility and the redemption of its 8.00% Senior Secured Notes due in 2020.
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 Incorporated, 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.
Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2014 annual revenues of $25.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.
Statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties that are described in Item 1A (Risk Factors) of the company’s most recent Annual Report on Form 10-K and in other documents that it files or furnishes with the Securities and Exchange Commission, which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Rite Aid cannot assure you if or when it will retire its 8.0% Senior Secured Notes due 2020 prior to their maturity.
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