BRAMPTON, ON, Aug. 22,
2022 /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, $800
million aggregate principal amount of senior unsecured notes
of the Company in two series (the "Offering"). The Offering
includes (i) $400 million aggregate
principal amount of series 2032 notes that will bear interest at a
rate of 5.008% per annum and will mature on September 13, 2032, and (ii) $400 million aggregate principal amount of series
2052 notes that will bear interest at a rate of 5.336% per annum
and will mature on September 13, 2052
(collectively, the "Notes").
The Notes are being offered on an agency basis by a syndicate of
agents led by TD Securities, CIBC Capital Markets, RBC Capital
Markets, BMO Capital Markets and Scotia Capital. Subject to
customary closing conditions, the Offering is expected to close on
September 13, 2022.
The net proceeds of the Offering may be used by the Company to
fund the redemption of its outstanding $800
million aggregate principal amount of 4.860% senior
unsecured notes maturing September 12,
2023 and for general corporate purposes.
It is a condition of closing of the Offering that the Notes be
rated at least "BBB (high)" with a "Stable" 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
2021 Annual Report, current Annual Information Form and 2022 Second
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