Rite Aid Announces Offering Of Senior Unsecured Notes

CAMP HILL, PA,- Rite Aid Corporation (NYSE: RAD) announced today that it is planning to offer $1,220.0 million aggregate principal amount of senior unsecured notes. A portion of such notes will mature in 2015 and the balance will mature in 2017. Rite Aid intends to use the net proceeds from the offering together with borrowings of approximately $75 million under its existing senior secured credit facility, $1,105.0 million under a new $1,105.0 million term loan tranche of its existing senior secured credit facility and the issuance of 250 million shares of its common stock to fund the acquisition of the Brooks and Eckerd drugstore chains and pay related fees and expenses.

As previously announced, Rite Aid expects to close the acquisition by June 1.

The offering is subject to market and other customary conditions.

The notes due 2015 and the notes due 2017 will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act. Neither series of notes has been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.