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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 1, 2014, March 2, 2013 and March 3, 2012
(In thousands, except per share amounts)
11. Indebtedness and Credit Agreement (Continued)
In connection with these refinancing transactions, the Company recorded a loss on debt
retirement, including tender and call premium and interest, unamortized debt issue costs and
unamortized discount of $62,172.
As of March 2, 2013, Rite Aid Lease Management Company, a 100 percent owned subsidiary of
the Company, had 213,000 shares of its Cumulative Preferred Stock, Class A, par value $100 per share
(‘‘RALMCO Cumulative Preferred Stock’’), outstanding. The carrying amount of the RALMCO
Cumulative Preferred Stock as of November 29, 2013 was $20,763 and was recorded in Other
Noncurrent Liabilities. On November 29, 2013, the Company repurchased all of the outstanding
RALMCO Cumulative Preferred Stock for $21,034. In connection with this transaction, the Company
recorded a loss on debt retirement of $271.
2013 Transactions
In February 2013, the Company repurchased all of its outstanding $410,000 aggregate principal of
9.750% senior secured notes, $470,000 aggregate principal of 10.375% senior secured notes and
$180,277 aggregate principal amount of 6.875% senior debentures. In February 2013, $257,261
aggregate principal amount of the 9.750% notes, $401,999 aggregate principal amount of the 10.375%
notes and $119,119 aggregate principal amount of the 6.875% debentures, respectively, were tendered
and repurchased by the Company. The Company redeemed the remaining 9.750% notes and 10.375%
notes for $171,432 and $72,901, respectively, which included the call premium and interest through the
redemption date. Additionally, the Company discharged the remaining 6.875% debentures for $63,416,
which included interest through maturity.
In February 2013, the Company redeemed $6,015 aggregate principal amount of 9.25% senior
notes 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 and in May 2012, the
Company issued an additional $421,000 of its 9.25% senior notes. The proceeds of the notes, together
with available cash, were used to repurchase the 8.625% senior notes and the 9.375% senior notes,
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,
7.5% senior secured notes, 10.25% senior secured notes and 9.5% senior notes.
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.
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