Albertsons Companies, Inc. entered into a second amended and restated debt commitment letter with nearly two dozen lenders to put together nearly $5 billion to support its merger with Rite Aid.
According to an 8K filing, Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse AG, Credit Suisse Loan Funding LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., Deutsche Bank Securities Inc., Deutsche Bank AG New York Branch, Deutsche Bank AG Cayman Islands Branch, Barclays Bank PLC, Royal Bank of Canada, Wells Fargo Bank, National Association, Wells Fargo Securities, LLC, PNC Bank, National Association, PNC Capital Markets LLC, Suntrust Robinson Humphrey, Inc., SunTrust Bank, U.S. Bank National Association, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (and its affiliates), Bank of Montreal, Fifth Third Bank, TD Bank, N.A. and Capital One, National Association have committed to provide the Company with $4,667 million of commitments to a new $5,000 million aggregate principal amount best efforts asset-based revolving credit facility, including a new asset-based term loan facility in an aggregate principal amount of $1,500 million, which represents an increase of $300 million from the original committed amount for this facility, and a new secured bridge loan facility in an aggregate principal amount of $500 million, which represents a decrease of $700 million from the original committed amount for this facilityy.
The proceeds of the Financing will be used, among other things, to partially refinance certain of Rite Aid’s existing indebtedness, pay fees and expenses in connection with the Merger and finance cash consideration, if any, in connection with the Merger.
The changes in the committed financing are intended to capitalize on current market conditions and reduce interest expense. While the total amount of committed financing is reduced by these changes, the Company is expected to have ample sources of liquidity to consummate the Merger and to finance the operations of the combined company following the consummation of the Merger.