Rite Aid Subsidiary Sells Medicare Receivable to Bank of America Unit
14 Outubro 2022 - 8:07AM
Dow Jones News
By Chris Wack
Rite Aid Corp. on Friday said its wholly-owned Elixir Insurance
Co. indirect subsidiary is selling its Medicare receivable to Part
D Receivable Trust 2020-1, a Delaware statutory trust beneficially
owned, directly or indirectly, by Bank of America N.A.
Under the terms of the agreement, the trust bought all of
Elixir's right, title and interest of its 2022 Medicare Part D
final reconciliation payment.
The payment is anticipated to be paid by the Centers for
Medicare and Medicaid Services, an agency in the U.S. Department of
Health and Human Services on or about Nov. 1, 2023. As of June 30,
2022, the book value of the receivable was $195.5 million.
Rite Aid said Elixir realized net cash proceeds of $167 million,
which it intends to use to repay borrowings under its revolving
credit facility. The company expects a non-operating loss of $15
million that it recognized on the sale of the receivable, which is
equivalent to 7.6% of the book value of the receivable.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 14, 2022 06:52 ET (10:52 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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