Rite Aid News

Rite Aid Completes $1.9 Billion Refinancing Of Its September 2010 Debt Maturities

CAMP HILL, PA (June 29, 2009) - Rite Aid Corporation (NYSE: RAD) announced today that it has successfully completed its previously announced refinancing of the majority of its September 2010 debt maturities, including its $145 million Tranche 1 Term Loan and $1.75 billion senior secured revolving credit facility.

The comprehensive refinancing plan was accomplished in a series of transactions, beginning with an amendment and restatement of Rite Aid's senior secured credit facility to permit greater flexibility with respect to refinancings, followed shortly thereafter by three separate transactions consisting of (1) the incurrence of $525 million of senior secured term loans due 2015, the proceeds of which were used to repay existing term and revolving loans due 2010, (2) the issuance of $410 million of 9.75% first lien senior secured notes due 2016, the proceeds of which were used to repay existing revolving loans, and (3) the incurrence of a new $1.0 billion revolving credit facility expiring in 2012 to replace the remaining portion of Rite Aid's existing revolving credit facility expiring in 2010. Rite Aid, which previously announced completion of the term loan and senior secured notes, completed the $1 billion revolving credit facility on June 26, 2009.

Rite Aid said that as a result of the refinancing, its only significant debt due before the maturity of the new revolving credit facility in 2012 are borrowings under its accounts receivable securitization programs which come due in September 2010. The amendments to Rite Aid's senior secured credit facility obtained as part of the refinancing provide Rite Aid with increased flexibility to refinance these programs with on or off balance sheet facilities.

"We are very pleased to have completed the refinancing," said Mary Sammons, Rite Aid chairman and CEO. "The refinancing significantly improves our debt maturity profile and provides us with the time and liquidity to further implement our initiatives to continue to improve our performance. As a result of the refinancing, we are in a much stronger financial position."

Rite Aid Corporation is one of the nation's leading drugstore chains with more than 4,800 stores in 31 states and the District of Columbia and fiscal 2009 annual revenues of more than $26.3 billion. Information about Rite Aid, including corporate background and press releases, is available through the company's website at www.riteaid.com.

This press release contains forward-looking statements, which are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements include our high level of indebtedness and our ability to refinance our indebtedness on terms favorable to us; our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our senior secured credit facility and other debt agreements; general economic conditions and inflation and interest rate movements and access to capital; our ability to improve the operating performance of our stores in accordance with our long term strategy, our ability to realize the benefits of the Brooks Eckerd acquisition, including positive same store sales growth for Brooks Eckerd and cost savings; our ability to hire and retain pharmacists and other store personnel; the efforts of private and public third-party payors to reduce prescription drug reimbursements and encourage mail order; competitive pricing pressures, including aggressive promotional activity from our competitors; our ability to manage expenses; our ability to realize the benefits from actions to further reduce costs and investment in working capital; continued consolidation of the drugstore industry; changes in state or federal legislation or regulations; the outcome of lawsuits and governmental investigations; the timing and effects of our proposed reverse stock split; including our continuing ability to complete sale and leaseback transactions. Consequently, all of the forward-looking statements made in this press release, including our guidance, are qualified by these and other factors, risks and uncertainties. Readers are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. Forward-looking statements can be identified through the use of words such as "may", "will", "intend", "plan", "project", "expect", "anticipate", "could", "should", "would", "believe", "estimate", "contemplate", and "possible".

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Contact:

Investors:717-975-3710, Chris Hall 717-214-8834 or investor@riteaid.com

Media:Karen Rugen 717-730-7766