Attached files
Exhibit
99.1
Press
Release
For
Further Information Contact:
|
INVESTORS
Chris
Hall
(717)
214-8834
or
investor@riteaid.com
|
MEDIA
Karen
Rugen
(717)
730-7766
|
RITE
AID COMPLETES COMPREHENSIVE PLAN TO REFINANCE ACCOUNTS
RECEIVABLE
SECURITIZATION FACILITIES
CAMP
HILL, PA, October 26, 2009 - Rite Aid Corporation (NYSE: RAD) announced today
the successful completion of its previously announced comprehensive plan to
refinance its existing first lien accounts receivable securitization facility
and second lien accounts receivable securitization facility due September 2010.
As of October 23, 2009, there was $475 million outstanding under the
securitization facilities. The refinancing consists of an offering of
$270 million aggregate principal amount of 10.250% senior secured notes due 2019
(with a yield to maturity of 10.375%, based on an offering price of 99.242% per
note), commitments to increase the maximum borrowing capacity under Rite Aid's
existing senior secured revolving credit facility from $1.0 billion to $1.175
billion, and an increase in borrowings under Rite Aid's existing $525 million
senior secured term loan due June 2015 by $125 million to $650
million. As a result of the refinancing, Rite Aid has refinanced all
of its September 2010 debt maturities.
The
notes are unsecured, unsubordinated obligations of Rite Aid Corporation and are
guaranteed by substantially all of Rite Aid's subsidiaries. The
guarantees are secured on a second lien basis. The notes and the
related subsidiary guarantees were offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as
amended (the "Securities Act"), and outside the United States pursuant to
Regulation S under the Securities Act. The notes and the related
subsidiary guarantees have not been registered under the Securities Act and may
not be offered or sold in the United States without registration or an
applicable exemption from the registration requirements.
Rite
Aid is one of the nation's leading drugstore chains with more than 4,800 stores
in 31 states and the District of Columbia and fiscal 2009 annual sales of more
than $26.3 billion. Information about Rite Aid, including corporate
background and press releases, is available through Rite Aid's website at www.riteaid.com.
This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of notes in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This
press release may contain forward-looking statements which are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements.
Factors that could cause actual results to differ materially from those
expressed or implied in such forward-looking statements include our high level
of indebtedness; our ability to make interest and principal payments on our debt
and satisfy the other covenants contained in our senior secured credit facility
and other debt agreements; general economic conditions, inflation and interest
rate movements; our ability to improve the operating performance of our stores
in accordance with our long term strategy; our ability to realize same store
sales growth; our ability to hire and retain pharmacists and other store
personnel; the efforts of private and public third-party payors to reduce
prescription drug reimbursements and encourage mail order; competitive pricing
pressures, including aggressive promotional activity from our competitors;
decisions to close additional stores and distribution centers, which could
result in further charges to our operating statement; our ability to manage
expenses; our ability to realize the benefits from actions to further reduce
costs and investment in working capital; continued consolidation of the
drugstore industry; changes in state or federal legislation or regulations; and
the outcome of lawsuits and governmental investigations. Consequently, all of
the forward-looking statements made in this press release are qualified by these
and other factors, risks and uncertainties. Readers are also directed to
consider other risks and uncertainties discussed in documents filed by Rite Aid
with the Securities and Exchange Commission. Forward-looking statements can be
identified through the use of words such as "may", "will", "intend", "plan",
"project", "expect", "anticipate", "could", "should", "would", "believe",
"estimate", "contemplate", and "possible".
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