Rite Aid Announces Results of its Cash Tender Offers for a Portion of its 7.70% Senior Notes due 2027 & 6.875% Senior Notes d...
13 November 2019 - 3:00PM
Business Wire
Rite Aid Corporation (NYSE: RAD) (“Rite Aid” or the “Company”)
today announced the results and anticipated settlement of its
previously announced cash tender offers (the “Tender Offers”) to
purchase up to $100 million aggregate principal amount of its
outstanding 7.70% Senior Notes due 2027 (“2027 Notes”) and 6.875%
Senior Notes due 2028 (the “2028 Notes” and together with the 2027
Notes, the “Notes”).
As of 11:59 p.m., New York City time, on November 12, 2019,
$18.1 million aggregate principal amount of the 2027 Notes and
$39.4 million aggregate principal amount of the 2028 Notes were
validly tendered and not validly withdrawn pursuant to the Tender
Offers. Rite Aid expects to accept for purchase all validly
tendered Notes (such notes collectively, the “Purchased
Notes”).
Holders of the Purchased Notes will receive total consideration
of $667.50 per $1,000.00 principal amount of 2027 Notes accepted
for purchase and $667.50 per $1,000.00 principal amount of 2028
Notes accepted for purchase, which amount includes the early tender
premium of $50.00 per $1,000 principal amount of 2027 Notes and
2028 Notes.
Holders of the Purchased Notes will also receive accrued and
unpaid interest from the last interest payment with respect to
their Purchased Notes to, but not including, November 14, 2019, the
settlement date for the Tender Offers.
This press release is neither an offer to purchase nor a
solicitation of an offer to sell securities. No offer,
solicitation, purchase or sale will be made in any jurisdiction in
which such offer, solicitation, or sale would be unlawful. The
offer is being made solely pursuant to terms and conditions set
forth in the Offer to Purchase and Supplement thereto.
The dealer manager for the Tender Offers is BofA Securities (the
“Dealer Manager”). Any questions regarding the Tender Offers should
be directed to the Dealer Manager at (toll-free) (888) 292-0070 or
(collect) (980) 388-3646. Requests for documentation regarding the
Tender Offers should be directed to the Information Agent for the
Tender Offers, Global Bondholder Services Corporation, at
(toll-free) (866) 470-3900 or (banks and brokers) (212) 430-3774 or
65 Broadway, Suite 404, New York, NY 10006.
About Rite Aid
Rite Aid Corporation, which generated fiscal 2019 annual revenue
of $21.6 billion, is one of the nation's leading drugstore chains
with 2,464 stores in 18 states and pharmacy benefit management
(PBM) capabilities through EnvisionRxOptions and its affiliates. At
Rite Aid, we have a personal interest in our customers’ health and
wellness and deliver the products and services they need to lead
healthier lives.
Statements in this release that are not historical, are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements
regarding Rite Aid's competitive position and ability to realize
its growth initiatives and operating efficiencies; and any
assumptions underlying any of the foregoing. Words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "predict," "project," "should," and "will"
and variations of such words and similar expressions are intended
to identify such forward-looking statements.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties,
including, but not limited to, our ability to complete the
transactions described herein as well as any other refinancing
transactions, and any resulting charges or impact on our financial
results; our high level of indebtedness and our ability to make
interest and principal payments on our debt and satisfy the other
covenants contained in our debt agreements; general economic,
industry, market, competitive, regulatory and political conditions;
our ability to improve the operating performance of our stores in
accordance with our long term strategy; the impact of private and
public third-party payers continued reduction in prescription drug
reimbursements rates and their efforts to limit access to payor
networks, including through mail order; our ability to manage
expenses and our investments in working capital; outcomes of legal
and regulatory matters; changes in legislation or regulations,
including healthcare reform; our ability to achieve the benefits of
our efforts to reduce the costs of our generic and other drugs; the
inability to complete the sale of the remaining Rite Aid
distribution centers and related assets to Walgreens Boots
Alliance, Inc. due to failure to satisfy the minimal remaining
conditions applicable only to the distribution centers being
transferred at such distribution center closing; our ability to
successfully execute and achieve benefits from our recent change in
senior leadership; the potential for operational disruptions due
to, among other things, concerns of management, employees, current
and potential customers, other third parties with whom we do
business and shareholders; the success of any changes to our
business strategy that may be implemented under our new chief
executive officer and other management; our ability to achieve cost
savings through the organizational restructurings within the
anticipated timeframe, if at all; possible changes in the size and
components of the expected costs and charges associated with the
organizational restructuring plan; and the outlook for and future
growth of the Company.
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version on businesswire.com: https://www.businesswire.com/news/home/20191113005477/en/
INVESTORS: Byron Purcell (717) 975-5809
MEDIA: Christopher Savarese (717) 975-5718
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