BRAMPTON, ON, Feb. 28,
2024 /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, $400 million aggregate principal
amount of senior unsecured notes of the Company (the "Notes") that
will bear interest at a rate of 5.115% per annum and will mature on
March 4, 2054 (the "Offering").
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
March 4, 2024.
The net proceeds of the Offering may be used by the Company to
partially fund the repayment of its outstanding $400 million aggregate principal amount of 3.918%
senior unsecured notes maturing June 10,
2024 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" trend 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 2,500 corporate franchised
and Associate-owned locations, Loblaw, its franchisees and
Associate-owners employ more than 220,000 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
1,100 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;
Joe Fresh® fashion and
family apparel; and four of Canada's top-consumer brands in Life
Brand®, Farmer's Market™, no name® and
President's Choice®. For more information, visit
Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at
www.sedarplus.ca.
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 and the use of
proceeds 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 2023 Annual Report
and current Annual Information Form. 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