Rite Aid Corporation (NYSE:RAD) has announced that it has issued a notice to redeem all its 9.25 percent senior notes due by 2020 which are outstanding in April 12,2018.
The notes shall be redeemed at 100 percent of the principal amount of the notes to be redeemed with an additional accrued and paid interest that shall be in existence at the moment.
Rite Aid Corporation is key among the leading drug store chains with annual revenues up to $32.8 billion
Albertsons Companies Inc. (NYSE:ABS) which is among the nation’s leading grocery chains has announced a definitive merger Agreement with Rite Aid Corporation in which the privately held Albertson Companies will enter into a merger with Rite Aid
In the terms of agreement, an exchange of every 10 shares of Rite Aid common stock, the Rite Aid shareholders will bear the rights to elect to receive either 1.079 shares of Albertson or 1 share of Albertson Companies common stock with $1.83 in cash.
Albertson Companies is supported by an investment consortium which also includes Kimco Realty Corporation (NYSE:KIM), Klaff Realty LP, Schottenstein Stores Corporation and Lubert-Adler partners LP.
In the merger, the current CEO of Rite Aid will assume the management of both companies with the current Albertson’s Companies CEO will be serving as the chairman of the new company.
The newly merged company is expected be have leadership from both companies and the company will be headquartered in Boise, Idaho and Camp Hill, Pennsylvania. The name of the company shall also be determined in the agreement.
The merger is expected to operate in nearly 4,900 locations, 320 clinics, 4,350 pharmacy counters across 38 states. The company shall also be expected to serve more than 40 million customers per week across its locations.
The combination is expected to provide customers with a flexible and convenient access to health, food and will also deliver value to its stakeholders with most of Albertson Company pharmacies rebranded as Rite Aid pharmacies
The new company is expected to enhance a geographical coverage and also be able to create local networks in attractive geographical areas, utilizing data analytics and integrated programs to help drive growth.