Rite Aid expected to price $1.8 billion eight-year notes on Thursday

By Paul A. Harris

Portland, Ore., March 18 – Rite Aid Corp. set an investor conference call for 10:30 a.m. ET on Thursday to roll out its $1.8 billion offering of eight-year senior notes (B3/CCC+/B+), according to a syndicate source.

The Rule 144A and Regulation S with registration rights deal is set to price later that day.

Citigroup Global Markets Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 35% equity clawback at par plus the coupon.

There is an investor put at 101% upon a change of control if ratings remain below investment grade.

The Camp Hill, Pa.-based drugstore chain plans to use the proceeds to finance the acquisition of Twinsburg, Ohio-based pharmacy benefit management company Envision Pharmaceutical Services. If the acquisition is not completed by Sept. 24, 2015 proceeds may be used to refinance certain debt, including the tranche 1 and tranche 2 term loans, and the 9¼% notes or the 8% notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.