Rite Aid Announces Successful Amendment and Extension to Credit Agreement
August 23 2021 - 8:00AM
Business Wire
- New facilities have a scheduled maturity in August 2026
compared to prior scheduled maturity of December 2023
- The Company now has no debt with a stated maturity prior to
July 2025
Rite Aid Corporation (NYSE: RAD) announced today that it has
entered into an amendment to its senior secured credit agreement,
which, after giving effect to the amendment, consists of a $2.8
billion senior secured asset-based revolving credit facility and a
$350 million “first-in, last out” senior secured term loan
facility. The new facilities extend the Company's debt maturity
profile and provides improved pricing on the “first-in, last out”
senior secured term loan. The new senior secured credit facilities
have a scheduled maturity date in August 2026, subject to an
earlier maturity if Rite Aid has not repaid or refinanced its
existing secured notes prior to such date. The Company's amended
revolving credit facility will bear interest at a rate of LIBOR
plus 125 to 175 basis points (or an alternate base rate plus 25 to
75 basis points), depending on availability under the revolving
facility. The Company's amended senior secured term loan facility
will bear interest at a rate of LIBOR plus 275 basis points (or an
alternate base rate plus 175 basis points), compared to a rate of
LIBOR plus 300 basis (or an alternate base rate plus 200 basis
points) points prior to the effectiveness of the amendment.
“For Rite Aid these amended credit facilities, with their
extended maturity date to 2026, greater flexibility and enhanced
pricing for the term loan, not only represent a significant vote of
confidence from the financial community, but more importantly
provide continued support for our immediate and long-term strategic
objectives under our RxEvolution strategy,” said Matt Schroeder,
Rite Aid’s chief financial officer.
BofA Securities, Inc., Wells Fargo Bank, National Association,
Capital One, National Association, BMO Harris Bank N.A., Fifth
Third Bank, MUFG Union Bank, N.A., PNC Capital Markets LLC, Truist
Securities, Inc. and ING Capital LLC, acted as joint lead arrangers
and joint bookrunners for the amended credit facilities. Bank of
America, N.A. continues to act as administrative agent and
collateral agent under the amended credit facilities.
About Rite Aid Corporation
Rite Aid Corporation is on the front lines of delivering
healthcare services and retail products to Americans 365 days a
year. Our pharmacists are uniquely positioned to engage with
customers and improve their health outcomes. We provide an array of
whole being health products and services for the entire family
through over 2,500 retail pharmacy locations across 17 states.
Through Elixir, we provide pharmacy benefits and services to
millions of members nationwide. For more information,
www.riteaid.com.
Cautionary Statement Regarding Forward-Looking
Statements
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.
Words such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict,"
"project," "should," and "will" and variations of such words and
similar expressions are intended to identify such forward-looking
statements.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties. These
and other risks, assumptions and uncertainties are more fully
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and in other documents that we file or furnish
with the Securities and Exchange Commission (the “SEC”), which you
are encouraged to read. To the extent that COVID-19 adversely
affects our business and financial results, it may also have the
effect of heightening many of such risk factors. 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 rely on these
forward-looking statements, which speak only as of the date they
are made. Rite Aid expressly disclaims any current intention, and
assumes no duty, 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.
All references to “Company” and “Rite Aid” as used throughout
this release refer to Rite Aid Corporation and its affiliates.
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version on businesswire.com: https://www.businesswire.com/news/home/20210823005315/en/
INVESTORS: Trent Kruse (717) 975-3710 investor@riteaid.com
MEDIA: Brad Ducey (513) 593-6507 Bradley.Ducey@riteaid.com
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