Rite Aid completes debt offering
CAMP HILL, Pa. — Rite Aid has closed a bond offering that it issued earlier this month to refinance its debt, the company said Monday.
Rite Aid said the proceeds of its offering of $481 million in 9.25% senior notes due 2020 would be used to buy back its 8.625% senior notes due 2015.
The retail pharmacy chain announced the offering on Feb. 14. The offering marked the first time that the company was able to tap the unsecured debt market in five years. Rite Aid has carried a heavy debt burden since its 2007 acquisition of the Brooks and Eckerd pharmacy chains.
Guggenheim Partners analyst John Heinbockel noted on Feb. 14 that Rite Aid's debt would remain at 6.6% of EBITDA, but that "the principal benefits are an extension of the maturity by five years and a reduction in longer-term financing risk."
Shares of Rite Aid were up 0.65% and trading at $1.55 following the news.