/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
BRAMPTON, ON, Sept. 5, 2013 /CNW/ - Loblaw Companies Limited (TSX: L)
(the "Company") announced today the pricing of $1.6 billion aggregate
principal amount of senior unsecured notes, consisting of $800 million
of Senior Unsecured Notes, Series 2019 due March 12, 2019 (the "Series
2019 Notes") and $800 million of Senior Unsecured Notes, Series 2023,
due September 12, 2023 (the "Series 2023 Notes", and collectively with
the Series 2019 Notes, the "Notes"). The Notes will be offered through
an agency syndicate consisting of Merrill Lynch Canada Inc., BMO
Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities
Inc. and TD Securities Inc., as joint bookrunners, and including
Desjardins Securities Inc., National Bank Financial Inc., Scotia
Capital Inc., Citigroup Global Markets Canada Inc. and J.P. Morgan
Securities Canada Inc. The settlement date is September 10, 2013. The
Series 2019 Notes will pay a fixed rate of 3.748% until maturity on
March 12, 2019. The Series 2023 Notes will pay a fixed rate of 4.860%
until maturity on September 12, 2023. The Notes will be unsecured
obligations of the Company and will rank equally with all other
unsecured indebtedness of the Company that has not been subordinated.
The net proceeds of the offering will either be applied toward partial
payment of the cash portion of the purchase price for the acquisition
of all of the outstanding common shares of Shoppers Drug Mart
Corporation (the "Acquisition") or, if applicable, to repay
indebtedness or for other general corporate purposes.
The net proceeds from the offering will be placed in escrow and will be
released from escrow upon satisfaction of the applicable release
conditions. The Notes will also be subject to a special mandatory
redemption in the event that the agreement relating to the Acquisition
is terminated or the applicable escrow release conditions are not
satisfied by April 30, 2014. The redemption price for any special
mandatory redemption will be 100% of the aggregate principal amount of
the Notes, together with accrued and unpaid interest on the Notes from
and including the date of settlement up to but not including the date
of the special mandatory redemption.
The Company will file in Canada a prospectus supplement for this issue
pursuant to its amended and restated short form base shelf prospectus
dated August 29, 2013. Details of the offering will be set out in the
prospectus supplement, which will be available on the SEDAR website at www.sedar.com.
The Series 2019 Notes and Series 2023 Notes have not been and will not
be registered under the United States Securities Act of 1933 and may
not be offered, sold or delivered in the United States or to U.S.
Persons absent registration or an applicable exemption from the
registration requirement of such Act. This news release does not
constitute an offer to sell or a solicitation to buy the Series 2019
Notes and Series 2023 Notes in the United States.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food retailer and a leading provider of drugstore,
general merchandise and financial products and services. Loblaw is one
of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ approximately 134,000 full-time and part-time
employees. Through its portfolio of store formats, Loblaw is committed
to providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada's strongest control
(private) label program, including the unique President's Choice®, no name® and Joe Fresh® brands. In addition, the Company makes available to consumers
President's Choice Financial® services and offers the PC® points and PC Plus™ loyalty program. For more information, visit
Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedar.com.
Forward-Looking Statements
This press release may contain forward-looking information within the
meaning of applicable securities legislation, which reflects Loblaw's
current expectations regarding future events. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond Loblaw's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include, but
are not limited to, changes in economic and market conditions, and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time to
time, including the Enterprise Risks and Risk Management section of the
Management's Discussion and Analysis ("MD&A") and the MD&A included in
the Company's 2012 Annual Report - Financial Review and the Risk
Factors sections of the prospectus supplement to be filed on SEDAR and
the amended and restated short form base shelf prospectus dated August
29, 2013. Loblaw does not undertake any obligation to update such
forward-looking information, whether as a result of new information,
future events or otherwise, except as expressly required by applicable
law.
SOURCE: Loblaw Companies Limited
