Rite Aid Announces Early Results of Exchange Offer for Up to $600 Million Principal Amount of its Senior Notes Due 2023

Rite Aid Corporation (NYSE: RAD) (“Rite Aid” or the “Company”) today announced the early results of its previously announced offer to exchange (the “Exchange Offer”) up to $600 million aggregate principal amount (the “Maximum Amount”) of its outstanding 6.125% Senior Notes due 2023 (the “Old Notes”) for newly issued 7.500% Senior Secured Notes due 2025 (the “New Notes”), upon the terms and subject to the conditions set forth in the offering memorandum dated January 6, 2020 (the “Offering Memorandum”). The purpose of the Exchange Offer is to improve the Company’s maturity profile by extending the maturity date of a portion of the Old Notes from April 2023 to July 2025.

As of 5:00 p.m., New York City time, on January 17, 2020 (such date and time, the “Early Deadline”), $1,633,938,000 million aggregate principal amount of the Old Notes, representing approximately 93.18% of the outstanding Old Notes, were validly tendered (and not validly withdrawn) pursuant to the Exchange Offer. Rite Aid expects to accept for purchase the Maximum Amount of validly tendered (and not validly withdrawn) Old Notes (the “Purchased Notes”). Because the aggregate principal amount of Old Notes validly tendered (and not validly withdrawn) at or prior to the Early Deadline exceeded the Maximum Amount, Old Notes validly tendered (and not validly withdrawn) at or prior to the Early Deadline will be accepted on a pro rata basis up to the Maximum Amount, subject to a proration factor of approximately 36.74%, and the balance of Old Notes not accepted for exchange will be returned to holders. No Old Notes tendered in the Exchange Offer after the Early Deadline will be accepted for purchase.

Holders of the Purchased Notes will receive the Total Exchange Consideration of $1,000 principal amount of New Notes per $1,000 principal amount of Old Notes accepted for purchase, which amount includes the Early Tender Payment of $50 principal amount of New Notes per $1,000 principal amount of Old Notes. Holders of the Purchased Notes will also receive payment of accrued and unpaid interest in cash to, but not including, the settlement date for the Exchange Offer, which is expected to be February 5, 2020.

The Exchange Offer will expire at 11:59 p.m., New York City time, on February 3, 2020. The Company reserves the right to amend, extend or terminate the Exchange Offer at any time, subject to applicable law. The Exchange Offer is subject to certain customary conditions described in the Offering Memorandum.