Rite Aid Corp. secured a new $2.7 billion senior secured asset-based revolving credit facility and a new $450 million senior secured term loan facility, according to a Dec. 20 SEC filing.
The U.S. drugstore chain said the new credit facilities replace the company's $3.7 billion credit facility with Citicorp North America Inc.
Bank of America NA is acting as administrative agent and collateral agent for the new facility. Merrill Lynch Pierce Fenner & Smith Inc., Wells Fargo Bank NA, Citigroup Global Markets Inc., BMO Harris Bank NA, Capital One NA, Fifth Third Bank, ING Capital LLC, MUFG Union Bank NA, PNC Capital Markets LLC and SunTrust Bank are acting as joint lead arrangers and joint book runners.
The new credit facilities will mature in December 2023, subject to an earlier maturity date of Dec. 31, 2022, if the company has not repaid or refinanced its existing 6.125% senior notes due 2023 prior to the due date.
The asset-based revolving credit facility bears interest at a rate per annum at the option of Rite Aid between the London interbank offered rate plus 1.25% and LIBOR plus 1.75% or a base rate plus 0.25% to 0.75%.
Borrowings under the new term loan facility bear interest at a rate per annum of LIBOR plus 3.00% or a base rate plus 2.00%.