Rite Aid Announces Results of its Cash Tender Offers for a Portion of its 7.70% Senior Notes due 2027 and 6.875% Senior Notes due 2028
Rite Aid Corporation (NYSE: RAD) (“Rite Aid” or the “Company”) today announced the results and anticipated settlement of its previously announced cash tender offers (the “Tender Offers”) to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 (“2027 Notes”) and 6.875% Senior Notes due 2028 (the “2028 Notes” and together with the 2027 Notes, the “Notes”).
As of 11:59 p.m., New York City time, on November 12, 2019, $18.1 million aggregate principal amount of the 2027 Notes and $39.4 million aggregate principal amount of the 2028 Notes were validly tendered and not validly withdrawn pursuant to the Tender Offers. Rite Aid expects to accept for purchase all validly tendered Notes (such notes collectively, the “Purchased Notes”).
Holders of the Purchased Notes will receive total consideration of $667.50 per $1,000.00 principal amount of 2027 Notes accepted for purchase and $667.50 per $1,000.00 principal amount of 2028 Notes accepted for purchase, which amount includes the early tender premium of $50.00 per $1,000 principal amount of 2027 Notes and 2028 Notes.
Holders of the Purchased Notes will also receive accrued and unpaid interest from the last interest payment with respect to their Purchased Notes to, but not including, November 14, 2019, the settlement date for the Tender Offers.
This press release is neither an offer to purchase nor a solicitation of an offer to sell securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The offer is being made solely pursuant to terms and conditions set forth in the Offer to Purchase and Supplement thereto.
The dealer manager for the Tender Offers is BofA Securities (the “Dealer Manager”). Any questions regarding the Tender Offers should be directed to the Dealer Manager at (toll-free) (888) 292-0070 or (collect) (980) 388-3646. Requests for documentation regarding the Tender Offers should be directed to the Information Agent for the Tender Offers, Global Bondholder Services Corporation, at (toll-free) (866) 470-3900 or (banks and brokers) (212) 430-3774 or 65 Broadway, Suite 404, New York, NY 10006.
About Rite Aid
Rite Aid Corporation, which generated fiscal 2019 annual revenue of $21.6 billion, is one of the nation's leading drugstore chains with 2,464 stores in 18 states and pharmacy benefit management (PBM) capabilities through EnvisionRxOptions and its affiliates. At Rite Aid, we have a personal interest in our customers’ health and wellness and deliver the products and services they need to lead healthier lives.