Canadian Tire Corporation announces redemption of medium-term notes

TORONTO, May 26, 2014 /CNW/ - Canadian Tire Corporation, Limited (CTC) (TSX:CTC, TSX:CTC.a)  announced today that it has exercised its right to redeem all $200 million of the outstanding 5.65% Series D medium-term notes due June 1, 2016 (the "Series D Notes") on the following terms:

• Redemption Date: June 25, 2014

• Redemption Price: $1,074.840 per $1,000 principal amount

• Accrued and Unpaid Interest: $3.715 per $1,000 principal amount.

• Total Redemption Price and Accrued and Unpaid Interest: $1,078.555 per $1,000 principal amount.

The redemption price has been determined in accordance with the provisions of the Trust Indenture dated March 14, 2005 and the Fourth Supplemental Trust Indenture dated June 1, 2009.  Interest accrued on the Series D Notes up to, but not including, the redemption date will be paid on the redemption date.

A notice of redemption will be delivered today to CDS Clearing and Depositary Services Inc. ("CDS") who is the registered holder of the Series D Notes. Non-registered holders who maintain their interests in the Series D Notes through CDS should contact their CDS customer services representatives with any questions about the redemption.  Alternatively, beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution, which holds interests in the Series D Notes on their behalf. The Trustee for the Series D Notes, BNY Trust Company of Canada (as attorney for CIBC Mellon Trust Company), may also be contacted toll free at 1-800-254-2826 or by email at bhr.clientservice@bnymellon.com.

FORWARD-LOOKING STATEMENTS

All statements other than statements of historical facts included in this press release may constitute forward-looking information, including but not limited to statements concerning management's expectations relating to the redemption of the Series D Notes and the redemption date. Often but not always, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is provided.

By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions, estimates, analyses, beliefs and opinions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of the factors - many of which are beyond our control and the effects of which can be difficult to predict - include but are not limited to liquidity and funding risks, including changes in economic conditions. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information.

For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the "Risk Factors" section of our Annual Information Form for fiscal 2013 and section 11.0 (Enterprise risk management) of our Management's Discussion and Analysis contained in the Company's 2013 Annual Report, as well as the Company's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.

The forward-looking information contained herein is based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities laws.

ABOUT CANADIAN TIRE

Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC," is a family of businesses that includes a retail segment, a financial services division, CT REIT and Canadian Tire Jumpstart Charities, CTC's affiliated national charity that is dedicated to removing financial barriers so kids across Canada can participate in sports and physical activities. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal categories. PartSource and Gas+ are key parts of the Canadian Tire network. The retail segment also includes Mark's, a leading source for casual and industrial wear, and FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere), which offers the best active wear brands. The nearly 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across the Company. For more information, visit Corp.CanadianTire.ca.

SOURCE CANADIAN TIRE CORPORATION, LIMITED