Rite Aid 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. Bank of America served as both administrative and collateral agent on the facilities.
The new facilities refinanced Rite Aid’s existing $2.7 billion senior secured asset-based reolver that was scheduled to mature in January 2020.
The new facilities extend the company’s debt maturity profile and provide additional liquidity. They will 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 new revolver 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 facility. The new term loan will bear interest at a rate of LIBOR plus 300 basis points (or an alternate base rate plus 200 basis points).
Merrill Lynch, Wells Fargo Bank, Citigroup Global Markets, BMO Harris Bank, Capital One, Fifth Third Bank, ING Capital, MUFG Union Bank, PNC Capital Markets and SunTrust Robinson Humphrey acted as joint lead arrangers and joint bookrunners on the new facilities
Rite Aid is one of the nation’s leading drugstore chains with fiscal 2018 annual revenues of $21.5 billion. The company also owns EnvisionRxOptions, a multi-faceted healthcare and pharmacy benefit management company.