Current Report Filing (8-k)
July 17 2017 - 4:42PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
July 17, 2017
Rite Aid Corporation
(Exact name of registrant as specified in
its charter)
Delaware
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1-5742
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23-1614034
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification Number)
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30 Hunter Lane, Camp Hill, Pennsylvania
17011
(Address of principal executive offices,
including zip code)
(717) 761-2633
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
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Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging
growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
¨
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item
2.02.
Results of Operations
and Financial Condition.
The information set
forth in Item 7.01 of this Form 8-K is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
As previously disclosed,
on June 28, 2017, Rite Aid Corporation (“Rite Aid”) entered into an Asset Purchase Agreement (the “Asset Purchase
Agreement”) with Walgreens Boots Alliance, Inc., a Delaware corporation (“WBA”) and Walgreen Co., an Illinois
corporation and wholly owned direct subsidiary of WBA (“Buyer”). Pursuant to the terms and subject to the conditions
set forth in the Asset Purchase Agreement, Buyer will purchase from Rite Aid 2,186 stores (the “Acquired Stores”) and
certain distribution and other specified assets related thereto for a purchase price of approximately $5.175 billion, on a cash-free,
debt-free basis, plus Buyer’s assumption of certain liabilities of Rite Aid and its affiliates (the “Sale”).
In response to a number of investor inquiries,
Rite Aid is providing supplemental information (the “Supplemental Information”) to provide an illustration of the
impact of the Sale on Rite Aid’s results of operations and capital structure, and show the expected sources and uses of
funds relating to the Sale. The Supplemental Information assumes (i) financial results for a 52-week fiscal 2017 instead
of a 53-week basis, as reported for the fiscal year ended March 4, 2017, (ii) $4.9 billion of the net proceeds from the Sale will
be used to pay down Rite Aid’s outstanding indebtedness, (iii) corporate administrative expenses would have been reduced
by $96 million, reflecting an allocation of corporate administration costs to the divested assets to reflect the right-sizing
of the Company’s administrative function, (iv) pro-forma adjustments do not include estimate’s for generic drug synergies
or other purchasing dis-synergies that could occur after the Sale is completed, (v) pro-forma interest expense assumes that Rite
Aid’s 6.125% notes due 2021, 7.7% notes due 2027 and 6.875% notes due 2028 will remain outstanding after Rite Aid repays
the outstanding debt it plans to repay after receiving proceeds from the Sale, (vi) pro-forma net income excludes the gain on
sale of assets to be recorded, and (vii) pro-forma information is presented as of and for the year ended March 4, 2017 and does
not reflect the results of Rite Aid’s most recently completed quarter ended June 3, 2017. The Supplemental Information is
for illustrative purposes only and is not necessarily indicative of what actual financial results of Rite Aid would have been
had the Sale occurred on the dates or for the periods indicated, nor does it purport to project the financial results of Rite
Aid for any future periods or as of any date. The Supplemental Information contains estimated adjustments, which are based on
information available to management; accordingly, such adjustments are subject to change and the impact of such changes may be
material. Estimates of results (including intended Sources of Funds included within the Supplemental Information) are inherently
uncertain and Rite Aid undertakes no obligation to update the Supplemental Information. The Supplemental Information has not been
prepared in conformity with Regulation S-X. Rite Aid’s independent auditors have not audited, reviewed, compiled or performed
any procedures with respect to this Supplemental Information. Accordingly, Rite Aid’s independent auditors do not express
an opinion or provide any form of assurance with respect thereto. The Supplemental Information should not be viewed in replacement
of results prepared in compliance with Generally Accepted Accounting Principles or any pro forma financial statements subsequently
required by the rules and regulations of the Securities and Exchange Commission.
A copy of Rite Aid’s
Supplemental Information is being furnished as Exhibit 99.1 to this Form 8-K.
The information (including
Exhibit 99.1) being furnished pursuant to this “Item 7.01 Regulation FD Disclosure” and “Item 2.02. Results of
Operations and Financial Condition” shall not be deemed to be “filed” for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section and shall not be
deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or
the Exchange Act regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and
Exhibits.
(d) Exhibits.
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99.1
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Supplemental Information
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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RITE AID CORPORATION
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Dated: July 17, 2017
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By:
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/s/ James J. Comitale
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Name:
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James J. Comitale
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Title:
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Senior Vice President, General Counsel
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EXHIBIT INDEX
Exhibit No.
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Description
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99.1
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Supplemental Information
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