Fitch Ratings has assigned a rating of ‘BB-/RR1’ to Rite Aid’s proposed new $1.725 billion secured revolving credit facility due 2018, $900 million senior secured term loan B due 2020, and $470 senior secured second lien term loan due 2020. The Rating Outlook is Stable.
The proceeds will be used to refinance Rite Aid’s existing $1.175 billion ABL facility due 2015, $1.039 billion first lien secured term loan due 2014, $410 million first lien secured notes due 2016, and $450 million second lien secured notes due 2016, leaving it with the same mix of first and second lien secured debt post refinancing. Further, the company plans to redeem $186 million of senior unsecured notes due 2013 with cash on hand.
The ratings continue to reflect the following:
To read the entire Fitch Ratings report, click here.