Rite Aid commences refinancing, estimates quarterly earnings in the black
Cumberland County-based drug store chain Rite Aid Corp. has commenced a debt refinancing transaction to extend the maturity of some of its outstanding indebtedness and lower interest expense, the company said.
The refinancing move consists of a cash tender offer for any and all of Rite Aid’s $500 million aggregate principal amount of 7.5 percent senior secured notes due 2017 with the proceeds from a new $500 million second lien term loan, and available cash, borrowings under Rite Aid’s revolving credit facility, or both, according to a news release.
Rite Aid also said it estimates net income for the first quarter of its fiscal 2014 year was between $75 million and $90 million compared with a net loss of $28.1 million for the comparable period in the prior year, according to the release. Management has not finalized actual financial results for the first fiscal quarter, and the actual results might differ from estimates.