Rite Aid Tender Offer Tantamount to Default, S&P Says

Rite Aid’s below-par tender offer constitutes a distressed debt exchange tantamount to default, according to a statement from S&P Global Ratings.

• The US-based drugstore retailer announced its tender offer to repurchase $150 million of its 2025, 2027 and 2028 notes at below-par prices earlier this month using cash on hand and borrowings under its revolving credit line
• Rite Aid said in a statement Tuesday it completed the transaction by deadline, Monday, and repurchased about $194 million of the notes’ aggregate principal outstanding. That constituted a 13% discount for the 2025 notes, according to S&P’s statement
  • “We do not view that ...