Rite Aid issues $481 million in senior notes to refinance debt
CAMP HILL, Pa. — Rite Aid is offering $481 million in eight-year senior notes to refinance debt that is scheduled to come due in three years, the retail pharmacy chain said Tuesday.
Rite Aid said it would use money from the offering to pay interest and other expenses related to a tender offer announced Tuesday for all outstanding 8.625% senior notes due 2015. The price includes the $459 million principal plus a 2.625% premium.
Guggenheim Partners analyst John Heinbockel noted that this was the first time Rite Aid had been able to tap the unsecured debt market in five years, calling it a "positive" that would reduce refinancing risk.
Shares of Rite Aid were up 9 cents and trading at $1.55 on the New York Stock Exchange following the news Tuesday morning.