Rite Aid Corporation (NYSE:RAD) announced the terms of an offering of $410 million aggregate principal amount ($10.0 million more than previously announced) of its 9.750% senior secured notes due 2016 (representing a yield to maturity of 10.125%, based on an offering price of 98.196% per Note). The Notes will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed by substantially all of Rite Aid’s subsidiaries. The guarantees will be secured on a senior lien basis.

The transaction is expected to close on June 12, 2009, subject to customary closing conditions. The offering is part of the previously announced comprehensive plan to refinance Rite Aid’s September 2010 debt maturities.

Also included in the refinancing is a new $525 million term loan due June 2015 under Rite Aid’s Senior Secured Credit Facility. Proceeds from the new term loan, which is scheduled to close on June 10, 2009, will be used to refinance the $145 million Tranche 1 Term Loan due September 2010 under Rite Aid’s Senior Secured Credit Facility, repay and cancel a portion of the commitments outstanding under Rite Aid’s existing $1.75 billion senior secured revolving credit facility also due September 2010, and for fees and other expenses.

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