TORONTO, June 11, 2018 /CNW/ - Canadian Tire Corporation,
Limited ("CTC") today announced the pricing of a private
placement offering of C$650 million
aggregate principal amount of unsecured medium term notes,
consisting of C$250 million aggregate
principal amount of 2.646% Series E Unsecured Medium Term Notes due
July 6, 2020 (the "Series E
Notes") and C$400 million
aggregate principal amount of 3.167% Series F Unsecured Medium Term
Notes due July 6, 2023 (the
"Series F Notes" together with the Series E Notes, the
"Notes"). The Series E Notes were priced at par, for an
effective yield of 2.646% per annum if held to maturity. The Series
F Notes were priced at par, for an effective yield of 3.167% per
annum if held to maturity. The offering is expected to close on or
about July 3, 2018.
It is expected that the Notes will be rated "BBB
(high)", with a stable trend, by DBRS Limited and
"BBB+", with a stable trend, by S&P
Global Ratings, acting through Standard & Poor's Rating
Services (Canada), a business unit
of S&P Global Canada Corp.
CTC intends to use the net proceeds of the offering to fund a
portion of the purchase price of the previously announced
acquisition of Helly Hansen (the "Acquisition"), to repay
indebtedness and/or for general corporate purposes.
The Notes will be subject to a special mandatory redemption in
the event that the Acquisition has not occurred on or prior to
5:00 p.m. (Toronto time) on August
31, 2018 (the outside date under the acquisition agreement
(the "Acquisition Agreement")) (or such later outside date
as agreed to in accordance with the Acquisition Agreement, which
later date shall not be later than 60 days after August 31, 2018), or if, prior to such time, the
Acquisition Agreement is terminated or if CTC delivers notice that
it does not intend to proceed with the Acquisition. 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.
RBC Capital Markets and BMO Capital Markets acted as joint
bookrunners for the offering.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale of any securities in any
jurisdiction in which such offering, solicitation or sale would be
unlawful.
The Notes have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered, sold or delivered in the United
States of America or its territories or possessions or to
U.S. persons (as defined in Regulation S under the U.S. Securities
Act). The information in this press release is not complete and may
be changed. This press release does not constitute an offer to sell
or a solicitation of an offer to buy any of the Notes in
the United States or to U.S.
persons or in any other jurisdiction where it is unlawful to do
so.
About Canadian Tire Corporation
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 and CT REIT. 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 & Gardening
divisions. 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; Pro Hockey Life, the
world's largest hockey centric retailer; and FGL (Sport Chek,
Hockey Experts, Sports Experts, National Sports, Intersport and
Atmosphere), which offers the best active wear brands. The
approximately 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 country by the Company and
its local dealers, franchisees and petroleum retailers. For more
information, visit Corp.CanadianTire.ca.
Forward‑Looking Statements
This press release contains forward-looking statements which
reflect management's expectations related to expected future events
including, but not limited to, statements relating to CTC's
expectations with respect to the offering and the intended use of
proceeds thereof, the credit ratings of the Notes and the
Acquisition. This forward-looking information and the
forward-looking information incorporated by reference typically
contains words such as "expects", "anticipates", "plans",
"believes", "estimates", "intends", "projects", "seeks", "likely",
"potential" or negative versions thereof and other similar
expressions, or future or conditional verbs such as "may", "will",
"should", "would" and "could". These forward-looking statements are
not facts, but only reflections of management's estimates and
expectations. Although CTC believes that these statements are based
on information and assumptions which are current, reasonable and
complete, these statements are necessarily subject to a number of
factors that could cause actual results to differ materially from
management's expectations as set forth in such forward-looking
statements for a variety of reasons, including market and general
economic conditions, risks and uncertainties inherent to the
offering and the Acquisition and the risks and uncertainties
discussed in disclosure materials filed from time to time by CTC
with Canadian securities regulatory authorities, including under
the section "Enterprise Risk Management" of CTC's Management's
Discussion and Analysis for the year ended December 30, 2017.
The forward-looking statements included in this press release
are made only as of the date hereof and CTC does not undertake to
publicly update these forward-looking statements to reflect new
information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events contained
in these forward-looking statements may or may not occur. CTC
cannot assure that projected results or events will be
achieved.
SOURCE CANADIAN TIRE CORPORATION, LIMITED