Rite Aid Corp. - Conference Presentation Calls

Rite Aid Corp. announced sales results for October. For the four weeks ended October 24, 2009, same store sales decreased 0.5% over the prior-year period. Front-end same store sales decreased 2.7% while pharmacy same store sales, which included an approximate 200 basis points negative impact from new generic introductions, increased 0.5%. Prescriptions filled at comparable stores increased 1.8% over the prior-year period. Total drugstore sales for the four-week period decreased 1.7% to $1.962 billion compared to $1.997 billion for the same period last year. Prescription revenue accounted for 69.0% of drugstore sales, and third party prescription revenue represented 96.2% of pharmacy sales. Same store sales for the 34-week period ended October 24, 2009 decreased 0.3%consisting of a 3.1% front-end same store sales decrease and a 1.1% increase in pharmacy same store sales. Total drugstore sales for the 34 weeks decreased 1.9% to $16.706 billion from $17.027 billion in last year's like period. Prescription revenue accounted for 68.3% of total drugstore sales, and third-party prescription revenue was 96.3% of pharmacy sales.

Rite Aid Corp. announced the terms of an offering of $270 million aggregate principal amount ($20 million more than previously announced) of 10.250% senior secured notes due 2019 (with a yield to maturity of 10.375%, based on an offering price of 99.242% per note). The notes will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed by substantially all of Rite Aid's subsidiaries. The guarantees will be secured on a second lien basis. The transaction is expected to close on October 26, 2009, subject to customary closing conditions. The offering of the notes is part of Rite Aid's previously announced comprehensive plan to refinance its existing first lien accounts receivable securitization facility and second lien accounts receivable securitization facility due September 2010. As of October 16, 2009, there was $475 million outstanding under the securitization facilities. Rite Aid has also received commitments to increase the borrowing capacity under Rite Aid's existing senior secured revolving credit facility from $1.0 billion to $1.175 billion. Also included in the refinancing plan is an increase in borrowing under Rite Aid's existing $525 million senior secured term loan due June 2015 by $125 million to $650 million.