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Rite Aid Refinances Revolving Credit Facility

Rite Aid has entered into a new senior secured credit agreement, consisting of a $2.7 billion senior secured asset-based revolving credit facility and a $450 million “first-in, last out” senior secured term loan facility.

The new $3.15 billion credit facilities refinance Rite Aid’s existing $2.7 billion senior secured asset-based revolving credit facility that was scheduled to mature in January 2020. The new facilities extend the company’s debt maturity profile and provide additional liquidity. The new senior secured credit facilities mature in December 2023, subject to an earlier maturity on December 31, 2022, if Rite Aid has not repaid or refinanced its existing 6.125% Senior Notes due 2023 prior to such date.

The company’s new 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 new senior secured term loan facility will bear interest at a rate of LIBOR plus 300 basis points (or an alternate base rate plus 200 basis points).