Citi Leads Rite Aid Merger Deal

Citigroup will lead debt financing for Rite Aid’s $3.4 billion merger with Jean Coutu Group’s Brooks and Eckerd stores. Terms of the deal and pricing could not be determined by press time.

Citigroup will lead debt financing for Rite Aid‘s $3.4 billion merger with Jean Coutu Group‘s Brooks and Eckerd stores. Terms of the deal and pricing could not be determined by press time. Jean Coutu will receive $1.45 billion in cash and 250 million shares of Rite Aid common stock. Rite Aid will also assume $850 million of Jean Coutu’s existing 8.5% senior subordinated notes. Rite Aid expects to finance the deal through a combination of existing cash and approximately $1.45 billion in bank borrowings, according to Standard & Poor’s. Calls to a Citigroup banker were not returned. Calls to spokesmen at Rite Aid and Jean Coutu were also not returned.