BRAMPTON, ON, April 30, 2020 /CNW/ - (TSX: L) –
Today, Loblaw Companies Limited ("Loblaw" or the "Company")
announced that it has agreed to issue, on a private placement basis
to qualified accredited investors in each of the Provinces of
Canada, $350 million
aggregate principal amount of senior unsecured notes (the "Notes")
that will bear interest at a rate of 2.284% per annum and will
mature on May 7, 2030 (the
"Offering").
The Notes are being offered on an agency basis by a syndicate of
agents led by TD Securities, BMO Capital Markets, CIBC Capital
Markets, RBC Capital Markets and Scotia Capital. Subject to
customary closing conditions, the Offering is expected to close on
May 7, 2020.
The net proceeds of the Offering may be used by the Company to
partially fund the repayment of its outstanding $350 million aggregate principal amount of 5.22%
Medium Term Notes, Series 2-B maturing June
18, 2020 and for general corporate purposes.
It is a condition of closing of the Offering that the Notes be
rated at least "BBB" with a "Positive" outlook by DBRS Limited and
at least "BBB" by Standard and Poor's Rating Services. The Notes
will be unsecured obligations of the Company and will rank equally
with all existing and future unsecured and unsubordinated
indebtedness of the Company.
The Notes have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there any sale of the Notes in any
jurisdiction where such offer, solicitation or sale would be
unlawful.
About Loblaw Companies Limited
Loblaw is Canada's food and
pharmacy leader, and the nation's largest retailer. Loblaw provides
Canadians with grocery, pharmacy, health and beauty, apparel,
general merchandise, financial services and wireless mobile
products and services. With more than 2,400 corporate, franchised
and Associate-owned locations, Loblaw, its franchisees and
associate-owners employ more than 190,000 full- and part-time
employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and
well-being of Canadians who make one billion transactions annually
in the company's stores. Loblaw is positioned to meet and exceed
those needs in many ways: convenient locations; more than 1,050
grocery stores that span the value spectrum from discount to
specialty; full-service pharmacies at nearly 1,400 Shoppers Drug
Mart® and Pharmaprix® locations and close to 500 Loblaw locations;
PC Financial® services; affordable Joe Fresh® fashion and family
apparel; and four of Canada's
top-consumer brands in Life Brand®, Farmer's MarketTM,
no name® and President's Choice®. 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,
including the expected closing of the Offering. 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, the factors discussed in Loblaw's
2019 Annual Report, current Annual Information Form and 2020 First
Quarter Report. 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. All forward-looking statements
contained in this press release are made as of the date hereof and
are qualified by these cautionary statements.
SOURCE Loblaw Companies Limited