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Rite Aid is nearing a deal with key bondholders which would allow it to avoid liquidation, according to sources. The sources added that the deal would allow junior bondholders to takeover the company and help the company exit Chapter 11 bankruptcy protection. The details on the deal are not disclosed yet. However, according to Rite Aid lawyer Aparna Yenamandra, the company has reached agreement “on all key economic points” with its primary financial stakeholders, which includes banks, junior bondholders, the US Justice Department, McKesson Corp. and committees representing unsecured creditors, opioid victims and others with infringement claims.
Rite Aid’s 8% 2026s are trading flat at 67, while its 7.7% 2027s are at deeply distressed levels of 3.4 cents on the dollar.
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