Rite Aid begins tender offer, intends to sell notes

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February 14. 2012 10:00AM - Last modified: February 14. 2012 10:27AM

Rite Aid begins tender offer, intends to sell notes

By Brent Burkey

Cumberland County-based drug store chain Rite Aid Corp. has commenced a tender offer to purchase outstanding 8.625 percent senior notes in the principal amount of $459 million, according to a regulatory filing.

Rite Aid also plans to issue $481 million in new notes to pay for the offer, according to the company.

The tender offer is for senior notes due in 2015 and the offer is scheduled to expire at midnight March 13, according to a filing with the Securities and Exchange Commission.

The new notes would be due in 2020, would be unsecured, unsubordinated obligations of the corporation and would be backed by substantially all of Rite Aid's subsidiaries, according to a separate SEC filing.

East Pennsboro Township-based Rite Aid has about 4,700 stores in 31 states and Washington, D.C., according to the company. Shares are traded on the New York Stock Exchange under the ticker symbol RAD.