Even as media reports circulated Friday that the Federal Trade Commission was preparing to block the merger between Walgreens Boots Alliance and Rite Aid, one of the merger’s key players took steps to help strengthen the case to approve it. According to a Securities and Exchange Commission filing, Fred's Pharmacy secured additional financing Friday to meet its obligation of acquiring as many as 1,200 Rite Aid stores that are expected to be divested as part of the merger.
The company entered into a second amended and restated commitment
letter with its lenders that increases the committed financing by $450
million, from $1.2 billion to $1.65 billion; extends the initial outside
commitment date to July 31, 2017; and permits Fred's to further extend
the outside commitment date to Oct. 31, 2017.. . . more