Duane Reade announces tender cash offers for senior notes

NEW YORK Duane Reade has announced cash tender offers for senior secured floating rate notes and senior subordinated notes and solicitation of consents to related indentures.

The company is commencing fixed price offers to purchase for cash any and all of the issuers’ $210 million outstanding aggregate principal amount of their senior secured floating rate notes due 2010 and any and all of the issuers’ $195 million outstanding aggregate principal amount of 9.75% senor subordinated notes due 2011.

In connection with the offers, the issuers are soliciting consents of the holders of the notes to the proposed amendments to the indentures governing the notes, which would, among other things, remove substantially all of the restrictive covenants in such indentures and, in case of the indenture governing the floating rate notes, release all of the collateral securing the floating rate notes.Holders who tender their notes in the relevant offer will be deemed to have consented to the applicable proposed amendments.

Holders who tender their notes prior to 11:59 p.m. New York City time on July 21, 2009 will receive $30 per $1,000 principal amount of notes.

The offers and solicitations of consents are conditioned upon, among other things, the funding of a $125 million investment by entities associated with Oak Hill Capital Partners.