RITE AID CORP: going-concern / distress — Rite Aid files Chapter 11 bankruptcy; secures $3.45B DIP financing; plans debt-for-equity restructuring

RITE AID CORP

Rite Aid and certain subsidiaries filed Chapter 11 on Oct 15, 2023; will continue operations as debtors-in-possession under Bankruptcy Court.
Reached restructuring agreement with senior secured noteholders: debt-for-equity swap; existing equity interests to be canceled.
Secured $3.45B DIP financing ($3.25B ABL + $200M term loan) with interest rates at SOFR+3.25% (ABL) and SOFR+7.50% (term loan); matures 12 months from closing.
Signed stalking horse APA to sell Elixir assets to MedImpact for $575M; auction process if higher bids received by Nov 16, 2023.

item 1.01 item 1.03 item 2.04 item 7.01 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

RITE AID CORP reported a default on senior notes of 6.875% Notes due 2028 with Harris Trust and Savings Bank, as trustee at 6.875% maturing 2028.

Instrument: senior notes
Principal: 6.875% Notes due 2028
Counterparty: Harris Trust and Savings Bank, as trustee
Rate: 6.875%
Maturity: 2028
Event: default

Exact text from the filing

Indenture, dated as of December 21, 1998, between Rite Aid Corporation, as issuer, and Harris Trust and Savings Bank, as trustee, related to the Company’s 6.875% Notes due 2028;

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

RITE AID CORP reported a default on senior notes of 8.000% Senior Secured Notes due 2026 with The Bank of New York Mellon Trust Company, N.A. at 8.000% maturing 2026.

Instrument: senior notes
Principal: 8.000% Senior Secured Notes due 2026
Counterparty: The Bank of New York Mellon Trust Company, N.A.
Rate: 8.000%
Maturity: 2026
Event: default

Exact text from the filing

Indenture, dated as of July 27, 2020, among Rite Aid Corporation, the subsidiary guarantors named therein and The Bank of New York Mellon Trust Company, N.A., related to the Company’s 8.000% Senior Secured Notes due 2026;

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

RITE AID CORP reported a default on senior notes of 7.500% Senior Secured Notes due 2025 with The Bank of New York Mellon Trust Company, N.A. at 7.500% maturing 2025.

Instrument: senior notes
Principal: 7.500% Senior Secured Notes due 2025
Counterparty: The Bank of New York Mellon Trust Company, N.A.
Rate: 7.500%
Maturity: 2025
Event: default

Exact text from the filing

Indenture, dated as of February 5, 2020, among Rite Aid Corporation, the subsidiary guarantors named therein and The Bank of New York Mellon Trust Company, N.A., related to the Company’s 7.500% Senior Secured Notes due 2025;

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

RITE AID CORP reported a default on senior notes of 7.70% Notes due 2027 with Morgan Guaranty Trust Company of New York, as trustee at 7.70% maturing 2027.

Instrument: senior notes
Principal: 7.70% Notes due 2027
Counterparty: Morgan Guaranty Trust Company of New York, as trustee
Rate: 7.70%
Maturity: 2027
Event: default

Exact text from the filing

Indenture, dated as of August 1, 1993, between Rite Aid Corporation, as issuer, and Morgan Guaranty Trust Company of New York, as trustee, related to the Company’s 7.70% Notes due 2027;

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.95

RITE AID CORP entered chapter 11 in United States Bankruptcy Court for the District of New Jersey (petition 2023-10-15).

Proceeding: chapter 11
Court: United States Bankruptcy Court for the District of New Jersey
Petition: 2023-10-15

Exact text from the filing

On October 15, 2023 (the “ Petition Date ”), Rite Aid Corporation (“ Rite Aid ” or the “ Company ”) and certain of its direct and indirect subsidiaries (together with the Company, the “ Debtors ”) filed voluntary petitions to commence proceedings under chapter 11 (the “ Chapter 11 Cases ”) of title 11 of the United States Code (the “ Bankruptcy Code ”) in the United States Bankruptcy Court for the District of New Jersey (the “ Bankruptcy Court ”).

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Source: SEC EDGAR

accession 0001104659-23-109413

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