Rite Aid 2012 Annual Report Download - page 94

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 3, 2012, February 26, 2011 and February 27, 2010
(In thousands, except per share amounts)
9. Indebtedness and Credit Agreement (Continued)
require the Company to repurchase them, which the Company has the ability to do under the terms of
our senior credit facility. On July 30, 2010, the Company received a notice of non-compliance from the
NYSE because the price of its common stock had fallen below the NYSE’s minimum share price rule.
The Company’s common stock continued to trade as usual on the NYSE and on March 1, 2011, the
Company received notice that it had regained compliance with the NYSE’s minimum share price listing
requirement. The Company is currently in compliance with all NYSE listing rules.
2010 Transactions
In October 2009, the Company issued $270,000 of 10.25% senior secured notes due October 15,
2019. These notes are unsecured, unsubordinated obligations of Rite Aid Corporation and rank equally
in right of payment with all other unsubordinated indebtedness. The Company’s obligations under these
notes are guaranteed, subject to certain limitations, by the same subsidiaries that guarantee the
obligations under the senior secured credit facility and the 9.75% senior secured notes due 2016. The
guarantees are secured by shared second priority liens with holders of the 10.375% senior secured
notes due 2016 and 7.5% senior secured notes due 2017. The indenture that governs the 10.25% notes
contains covenant provisions that, among other things, include limitations on the Company’s ability to
pay dividends, make investments or other restricted payments, incur debt, grant liens, sell assets and
enter into sale-leaseback transactions. The 10.25% senior secured notes due October 2019 were issued
at 99.2% of par.
In June 2009, the Company issued $410,000 of 9.75% senior secured notes due June 12, 2016.
These notes are unsecured, unsubordinated obligations of Rite Aid Corporation and rank equally in
right of payment with all other unsubordinated indebtedness. The Company’s obligations under these
notes are guaranteed, subject to certain limitations, by the same subsidiaries that guarantee the
obligations under the senior secured credit facility and its 8.00% senior secured notes due 2020. These
guarantees are shared, on a senior basis, with debt outstanding under the senior secured credit facility
and its 8.00% senior secured notes due 2020. The indenture that governs the 9.75% notes and its
8.00% senior secured notes due 2020 contains covenant provisions that, among other things, allow the
holders of the notes to participate along with the holders of the 8.00% senior secured notes due 2020
in the mandatory prepayments resulting from the proceeds of certain asset dispositions (at the option
of the noteholder) and include limitations on the Company’s ability to pay dividends, make investments
or other restricted payments, incur debt, grant liens, sell assets and enter into sale-leaseback
transactions. The 9.75% senior secured notes due June 2016 were issued at 98.2% of par.
Interest Rates and Maturities
The annual weighted average interest rate on the Company’s indebtedness was 7.4%, 7.5%, and
6.8% for fiscal 2012, 2011, and 2010, respectively.
The aggregate annual principal payments of long-term debt for the five succeeding fiscal years are
as follows: 2013—$59,445; 2014—$189,316; 2015—$1,044,692; 2016—$608,617 and $4,340,708 in 2017
and thereafter.
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