PHARMACY

Rite Aid successfully amends financing agreement

BY Michael Johnsen

CAMP HILL, Pa. Rite Aid on Friday successfully amended its Receivables Financing Agreement, through which Rite Aid sells substantially all of its eligible third party pharmaceutical receivables to another entity, which then transfers those interests to various commercial paper vehicles, according to documents the company filed to the Security and Exchange Commission.

Under the amendment, Rite Aid will have a step-down in borrowing availability beginning Jan. 22 of approximately $100 million and an additional step-down of approximately $100 million beginning Feb. 20. To replace the loss of borrowing availability under the Receivables Financing Agreement, Rite Aid has executed a Commitment Letter with Citigroup Global Markets, pursuant to which Citi will act as sole lead arranger and sole bookrunning manager on a new second priority accounts receivable securitization term loan.  The Second Lien Facility will be up to $200 million, of which Citi has already committed to provide $100 million.

The Second Lien Facility is expected to close on or about Feb. 20 and mature on Sept. 14, 2010.

“Based upon … current levels of operations, planned improvements in … operating performance, the approval by [Rite Aid] stockholders of the proposed reverse stock split and the opportunities that [Rite Aid] believes the acquisition of Brooks Eckerd provides, [Rite Aid] believes that cash flow from operations together with available borrowings under the senior secured credit facility, sales of accounts receivable under the Existing Facility and the new Second Lien Facility that has been committed to by Citi and other sources of liquidity will be adequate to meet its requirements for working capital, debt service and capital expenditures for the foreseeable future,” the company stated.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

American Consultants Rx donates discount Rx cards to non-profits

BY Alaric DeArment

ATLANTA American Consultants Rx has re-launched a community service project that involves donating millions of discount prescription cards to non-profit organizations, hospitals, schools, churches and others.

President Charles Myrick announced the plan Wednesday. American Consultants Rx said it was an effort to assist the uninsured, underinsured and elderly people in dealing with the high cost of prescription drugs.

The cards are accepted at more than 50,000 stores, including such nationwide chains as Walgreens, Kmart and Walmart.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

Panacos sells rights to HIV drug candidate bevirimat to Myriad for $7M

BY Alaric DeArment

WATERTOWN, Mass. Panacos Pharmaceuticals, a biotechnology company in Massachusetts, said Wednesday that it has sold the rights to the HIV drug candidate bevirimat to Salt Lake City-based drug maker Myriad Pharmaceuticals for $7 million.

The sale includes patents and patent applications related to bevirimat, product inventory, rights to regulatory filings and various contracts. Panacos said the drug, a maturation inhibitor, is the first of its class.

“Our goal has been to develop drugs with novel mechanisms of action to give people living with HIV new treatment options,” Panacos president and CEO Alan Dunton said in a statement. “In order to achieve this goal and to manage capital resources in the current market environment, we chose to sell bevirimat to Myriad Pharmaceuticals.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?