Revco D.S. Inc. unveiled a much-anticipated recapitalization Monday involving $300 million of new bank loans, $125 million of senior unsecured notes, and a $110 million rights offering to shareholders.

Proceeds will be used to retire $433 million of post-bankruptcy debt.

The Twinsburg, Ohio-based drugstore chain spent nearly four years in Chapter 11 proceedings. The company emerged from bankruptcy in June.

Revco gained notoriety as one of the first big 1980s' leveraged buyouts to go bust.

Misstart

In August, Revco picked three banks to underwrite the new bank loans. But then it put the brakes on the process, as news of the pending recapitalization began to leak out.

The leads are Continental Bank, Banque Paribas, and non-bank agent General Electric Capital Corp.

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