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.
A group of lenders led by Bank of America and Merrill Lynch have committed to providing Albertsons with a $4.667 billion facility to support the company’s merger with Rite Aid.
To support acquisition by Fred’s of 865 Rite Aid stores, Bank of America, Merrill Lynch and Regions Capital have provided $1.05 billion of committed ABL financing.
Fox Business News reported that Rite-Aid has announced plans to issue a new $500 million second-lien term loan in an effort to lower its interest expense.
Rite Aid said it completed its debt refinancing transactions. Citigroup is acting as dealer manager and solicitation agent for each tender offer and consent solicitation.
Fitch Ratings assigned a rating of BB-/RR1 to Rite Aid’s proposed new $1.725 billion secured revolver, $900 million term loan and $470 second lien term loan. The proceeds will be used to refinance Rite Aid’s existing $1.175 ABL facility.