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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 2, 2013, March 3, 2012 and February 26, 2011
(In thousands, except per share amounts)
11. Indebtedness and Credit Agreement (Continued)
In February 2013, the Company also used available cash to redeem $6,015 aggregate principal
amount of 9.25% senior notes due 2013 at par for $6,147, which included interest through the
redemption date.
In connection with the above transactions, the Company recorded a loss on debt retirement,
including tender and call premium and interest, unamortized debt issue costs and unamortized discount
of $122,660.
In February 2012, the Company issued $481,000 of its 9.25% senior notes due 2020 and in May
2012, the Company issued an additional $421,000 of its 9.25% senior notes due 2020. The proceeds of
the notes, together with available cash, were used to repurchase the 8.625% senior notes due 2015 and
the 9.375% senior notes due 2015, respectively. 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 the notes are fully and unconditionally guaranteed,
jointly and severally, on an unsubordinated basis, by all of its subsidiaries that guarantee the Company’s
obligations under the senior secured credit facility, the second priority secured term loan facility and
the outstanding 8.00% senior secured notes due 2020, 7.5% senior secured notes due 2017, 10.25%
senior secured notes due 2019 and 9.5% senior notes due 2017.
In May 2012, the Company completed a tender offer for the 9.375% notes in which $296,269
aggregate principal amount of the outstanding 9.375% notes were tendered and repurchased. In June
2012, the Company redeemed the remaining 9.375% notes for $108,731, which included the call
premium and interest through the redemption date. The May 2012 refinancing resulted in an aggregate
loss on debt retirement of $17,842.
2012 Transactions
In February 2012, the Company completed a tender offer for the 8.625% notes in which $404,844
aggregate principal amount of the outstanding 8.625% notes were tendered and repurchased, resulting
in an aggregate loss on debt retirement of $16,066, recorded in the fourth quarter of fiscal 2012. In
March 2012, the Company redeemed the remaining 8.625% notes for $55,644, which included the call
premium and interest through the redemption date.
During August 2011, the Company repurchased $41,000 of its 8.625% notes, $5,000 of its 9.375%
notes and $4,496 of its 6.875% debentures. These repurchases resulted in a gain for the period of
$4,924.
2011 Transactions
In August 2010, the Company issued $650,000 of 8.00% senior secured notes due August 2020.
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. These guarantees are shared, on a senior basis, with
debt outstanding under the senior secured credit facility. The indenture that governs the 8.00% notes
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