Rite Aid Provides Update on Debt Refinancing Transactions

  Rite Aid Provides Update on Debt Refinancing Transactions

Business Wire

CAMP HILL, Pa. -- February 7, 2013

Rite Aid Corporation (NYSE: RAD) today provided an update on its previously
announced debt refinancing transactions that would extend the maturity of a
portion of its outstanding indebtedness and lower interest expense. The
refinancing transactions are now expected to include:

  *the amendment and restatement of Rite Aid’s existing revolving credit
  *the refinancing of Rite Aid’s $1.039 billion Tranche 2 Term Loan due 2014
    and a cash tender offer for Rite Aid’s $410.0 million aggregate principal
    amount of 9.750% Senior Secured Notes due 2016 with the proceeds of a new
    $1.125 billion first lien term loan, together with borrowings under the
    amended revolving credit facility. Rite Aid has currently received signed
    commitments for a $1.5 billion revolving credit facility. To the extent
    that Rite Aid receives additional commitments for the revolving credit
    facility, these proceeds will be used to prepay a portion of its $331.7
    million Tranche 5 Term Loan due 2018;
  *a cash tender offer for Rite Aid’s $470.0 million aggregate principal
    amount of 10.375% Senior Secured Notes due 2016 with the proceeds from a
    new $470 million second lien term loan,together with borrowings under the
    amended revolving credit facility ; and
  *a cash tender offer for Rite Aid’s $180.3 million aggregate principal
    amount of 6.875% Senior Debentures due 2013 with available cash.

These refinancing transactions are subject to customary terms and conditions.
Rite Aid’s results of operations and guidance will likely be impacted by fees,
expenses and charges related to the refinancing transactions.

Rite Aid intends to redeem any 9.750% Notes and 10.375% Notes not tendered in
the tender offers and related consent solicitations. Rite Aid intends to
satisfy and discharge any 6.875% Debentures that remain outstanding after the
tender offer and consent solicitation. Holders of untendered 6.875% Debentures
that are satisfied and discharged will continue to receive regular interest
payments and repayment of their 6.875% Debentures will be made at maturity on
Aug. 15, 2013.

This press release does not constitute a notice of redemption under the
optional redemption provisions of the indenture governing any series of the
Notes, nor does it constitute an offer to sell, or a solicitation of an offer
to buy, any security. No offer, solicitation, or sale will be made in any
jurisdiction in which such an offer, solicitation, or sale would be unlawful.

Requests for documents relating to each tender offer and consent solicitation
may be directed to Global Bondholder Services Corp., the Information Agent, at
(866) 804-2200 or (212) 430-3774 (banks and brokers). Citigroup will act as
Dealer Manager and Solicitation Agent for each tender offer and consent
solicitation. Questions regarding each tender offer and consent solicitation
may be directed to Citigroup at (800) 558-3745 (toll free) or (212) 723-6106

Rite Aid is one of the nation’s leading drugstore chains with 4,626 stores in
31 states and the District of Columbia and fiscal 2012 annual revenues of
$26.1 billion.

Statements in this release that are not historical are forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Words such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“predict,” “project,” “should,” and “will” and variations of such words and
similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and
involve risks, assumptions and uncertainties, including, but not limited to,
our high level of indebtedness and our ability to make interest and principal
payments on our debt and satisfy the other covenants contained in our debt
agreements, general economic, market and competitive conditions, our ability
to improve the operating performance of our stores in accordance with our long
term strategy, the continued efforts of private and public third-party payers
to reduce prescription drug reimbursements and encourage mail order and limit
access to payor networks, the ability to realize anticipated results from
capital expenditures and cost reduction initiatives, outcomes of legal and
regulatory matters and changes in legislation or regulations, including
healthcare reform. These and other risks, assumptions and uncertainties are
described in Item 1A (Risk Factors) of our most recent Annual Report on Form
10-K and in other documents that we file or furnish with the Securities and
Exchange Commission, which you are encouraged to read. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date they are made. Rite Aid expressly disclaims any current
intention to update publicly any forward-looking statement after the
distribution of this release, whether as a result of new information, future
events, changes in assumptions or otherwise.


Rite Aid Corporation
Matt Schroeder, 717-214-8867
or investor@riteaid.com
Susan Henderson, 717-730-7766
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