On December 20, 2016, Memphis-based Fred’s signed an agreement with Walgreens Boots Alliance and Rite Aid to purchase 865 stores and certain assets related to store operations located across the Eastern and Western U.S. for $950 million in cash.

To support the acquisition, Bank of America, Merrill Lynch and Regions Capital provided $1.05 billion of committed ABL financing.

According to a related 8-K filing, Fred’s has received commitment for a $600 million term loan from Merrill Lynch, TPG Specialty Lending, Crystal Financial, Gordon Brothers Finance Company, Pathlight Capital, Tennenbaum Capital Partners and Great American Capital Partners to further support the acquisition.