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Rite Aid Asks Bondholders for More Time Amid Tepid Turnaround

  • Drugstore chain proposes debt swap aimed at extending notes
  • Company looking for turnaround after years of struggle
A pedestrian passes in front of a Rite Aid Corp. store in Oakland, California.

A pedestrian passes in front of a Rite Aid Corp. store in Oakland, California.

Photographer: David Paul Morris/Bloomberg

Rite Aid Corp. is asking some of its creditors for a few more years of patience while it tries to turn around the struggling drugstore chain.

Bondholders are being asked to swap $750 million of Rite Aid’s unsecured 2023 notes for securities that wouldn’t be paid back for three more years, according to a statement. They’d also have to accept a haircut on their holdings. In return, the new notes would be secured by Rite Aid’s assets and pay a higher interest rate.