Rite Aid
This article was originally published in The Rose Sheet
Executive Summary
Drug chain secures $640 mil. in additional financing from Citibank for working capital and general corporate purposes, the company announces June 14. The funding, part of a new $1 bil. senior secured credit facility, will be reimbursed August 2002; the balance will pay down the $300 mil. asset securitization facility. Rite Aid's refinancing program also includes the amendment of $3.2 bil. of debt, $2.2 bil. of which is led by J.P. Morgan. The debt will now mature Aug. 15, 2002. In addition, Rite Aid transferred $285 mil. in bank debt into common stock at $5.50 per share. J.P. Morgan holds $200 mil. of the debt