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.
Citi Leads Rite Aid Merger Deal