Tuesday, June 13, 2017

Fred's secures additional financing to acquire divested Rite Aid stores

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

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