Rite Aid Debt Deal ($RAD)

Rite Aid issued debt this week at 6.75% and there was so much demand the offering was doubled to $800 million.

The most recent fiscal year, their interest expense was $515 million and their operating income before interest and taxes was $647 million (coverage ratio of 1.25x). For the past three fiscal years, their operating income was $832 million and their interest expense was $1.6 billion.

Like all the chain drugstores, they make almost all of their money filling prescriptions.

Another sign of a credit market top.