Rite Aid completes refinancing transactions
CAMP HILL, Pa. Rite Aid on Thursday announced that it successfully completed its previously announced refinancing transactions that include a new $1.2 billion revolving credit facility due 2015 and the issuance of $650 million aggregate principal amount of 8% senior secured notes due 2020.
Rite Aid also has entered into the previously announced amendments to its senior credit facility.
The new $1.2 billion revolving credit facility due 2015 replaces Rite Aid’s existing revolving credit facility due 2012. The new revolving credit facility has reduced pricing and a five-year maturity, although the maturity shall be April 18, 2014, in the event that Rite Aid does not repay, refinance or otherwise extend the remaining term loans under its senior credit facility prior to that time and meets certain other conditions. The amendments to its senior credit facility loosen the fixed charge coverage ratio test and permit the mandatory repurchase of Rite Aid’s existing 8.5% convertible notes due 2015, subject to the satisfaction of certain conditions.
The proceeds of the offering of the 8% senior secured notes due 2020 were used, together with available cash, to repay and retire Rite Aid’s $648 million Tranche 4 Term Loan due 2015 under its senior secured credit facility, and to fund related fees and expenses.
A&P names new EVP operations
MONTVALE, N.J. Grocer A&P has appointed former OfficeMax executive Paul Hertz as EVP operations, succeeding Mark Kramer, who has left the company to pursue other interests, the company announced on Wednesday.
In this role, Hertz will be leading the field operations team.
He has an extensive background in operations with more than 20 years in various management positions within retail sales management and operations. Prior to joining A&P, Hertz was EVP retail stores for OfficeMax, where he was responsible for all retail operations throughout the United States. Before that, he served as SVP store operations. Hertz also served as VP Wild Oats Stores, VP store operations for ShopKo and has held several field and VP-level positions at Fred Meyer, a division of Kroger.
A&P’s new president and CEO Sam Martin also came from OfficeMax, as well as Wild Oats, ShopKo and Fred Meyer. In late July, the company announced the appointment of Martin as its new CEO. He succeeded Ron Marshall, who left the company after serving less than six months at the helm.
Martin, who has more than three decades of management experience in the food retail industry, joined A&P from OfficeMax, where he served as COO since 2007. Prior to OfficeMax, Martin was COO for Wild Oats Markets through the company’s acquisition by Whole Foods. His experience also includes senior management roles at ShopKo Stores and Fred Meyer.
Kmart, Jaclyn Smith raise breast cancer awareness
HOFFMAN ESTATES, Ill. Proceeds from Jaclyn Smith clothing sold at Kmart will go toward breast cancer research as part of the mass merchandise chain’s celebration of its 25-year relationship with the actress and designer, Kmart said.
In September and October, Kmart will donate $1 from every purchase of items from the special Jaclyn Smith 25th Anniversary and limited edition collections to the Breast Cancer Research Foundation. Smith has designed apparel for Kmart for 25 years, and the chain launched the Jaclyn Smith Home Collection in August 2008.
“As a breast cancer survivor myself, this cause is near and dear to my heart, to my loved ones and to my extended family at Kmart,” Smith said. “I’m grateful that my relationship with Kmart has not only allowed me to provide great design at a truly affordable price, but also to work with incredible organizations like BCRF to give back to a cause that is working diligently in the fight against breast cancer.”