CORRECTED - UPDATE 2-Rite Aid sets plan to complete 2010 debt refinance

* Rite Aid to offer $250 mln in senior secured notes

* Offer, other steps wrap up refinancing of 2010 debt

* Amendment would raise borrowing capacity to $1.175 bln

* Shares fall 1.9 percent to $1.55, bonds up slightly (Corrects third bullet point to $1.175 bln from $1.75 bln. Figure was correct in story.) (Adds analyst comment, trading activity, background)

CHICAGO, Oct 19 (Reuters) - Rite Aid Corp (RAD.N) plans to offer $250 million in senior secured notes and take other steps to wrap up a refinancing of all of its debt maturing in September 2010.

In June, the No. 3 drugstore operator completed the refinancing of most of its September 2010 debt maturities.

"We expected this refinancing and believe it will (be) successful," Doug Conn, managing director and retail credit specialist at Hexagon Securities, said in a note.

The company's plans essentially remove refinancing and liquidity risk for the next two years, as its next major maturities come in 2012, he said.

"However, due the recent run up in (Rite Aid) levels we still think bonds represent fair value. We remain comfortable with both secured and unsecured parts of the capital structure," Conn said.

Rite Aid had $475 million outstanding under its first and second lien accounts receivable securitization facilities as of Oct. 16, the company said on Monday.

The refinancing also raises borrowing under an existing $525 million senior secured term loan due June 2015 to $650 million.

Rite Aid plans to enter into an amendment that would raise the maximum borrowing capacity under its existing senior secured revolving credit facility from $1 billion to $1.175 billion.

Rite Aid's bonds rose in secondary trading. Rite Aid's 9.5 percent bond due 2017 rose 1.5 cents to 84.5 cents on the dollar, according to MarketAxess. The bond has risen from 77.75 cents on Oct 2.

Shares of Rite Aid, which is working on improving sales at more than 4,800 stores, fell 1.9 percent to $1.55. Last month, Rite Aid posted its ninth consecutive quarterly net loss and lowered its expectations for the fiscal year. [ID:nN24396230]

The new $250 million in notes, due 2019, will be unsecured, unsubordinated obligations guaranteed by substantially all of Rite Aid's subsidiaries. The guarantees will be secured on a second lien basis.

The company plans to use net proceeds to repay and cancel its accounts receivable securitization facilities and fund related fees and expenses. (Reporting by Jessica Wohl, additional reporting by Karen Brettell in New York; Editing by Derek Caney)