Rite Aid Bonds Gain on Plan to Sell Stores and Pay Down Debt
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
RAD US (Rite Aid Corp)
WBA US (Walgreens Boots Alliance Inc)
People
Mickey Chadha
Topics
BFW Debt Capital Markets U.S.
First Word Loans U.S.
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UUID: 7947283
(Bloomberg) -- Rite Aid 6.75% unsecured notes due in 2021 up as much as 4 cents on the dollar to 102.875 after Walgreens decides to buy stores instead of taking over the chain. Proceeds will be used to reduce debt and strengthen balance sheet, co. said in a statement Thursday.
- 7.7% unsecured notes due 2027 also trade as high as 102.75
- Cost of protecting RAD debt against default for 5 years, measured by credit default swaps, falls 46.4 bps to 423.9 at 9:31 a.m. in New York, biggest drop since October 2015
- Asset purchase will result in a lower debt burden for Walgreens as it has enough cash to fund the deal and won’t need to issue any incremental debt, Moody’s analyst Mickey Chadha said in a statement
- Related story: Walgreens Scraps Rite Aid Takeover, Will Buy Stores Instead
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
RAD US (Rite Aid Corp)
WBA US (Walgreens Boots Alliance Inc)
People
Mickey Chadha
Topics
BFW Debt Capital Markets U.S.
First Word Loans U.S.
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283