Rite Aid 2015 Annual Report Download - page 97

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 28, 2015, March 1, 2014 and March 2, 2013
(In thousands, except per share amounts)
13. Indebtedness and Credit Agreement (Continued)
On July 2, 2013, the Company issued $810,000 of its 6.75% senior notes due 2021. 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 facilities and the outstanding 8.00%
senior secured notes due 2020, 10.25% senior secured notes due 2019 and 9.25% senior notes due
2020. The Company used the net proceeds of the 6.75% notes, borrowings under its revolving credit
facility and available cash to repurchase and repay all of the Company’s outstanding $810,000 aggregate
principal of 9.5% senior notes due 2017.
In July 2013, the Company completed a tender offer for its 9.5% notes in which $739,642
aggregate principal amount of the outstanding 9.5% notes were tendered and repurchased. In August
2013, the Company redeemed the remaining 9.5% notes for $73,440, which included the call premium
and interest to the redemption date.
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
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