Loblaw Companies Limited to Issue $800 Million of Senior Unsecured Notes

11/29/2018

BRAMPTON, ON, Nov. 29, 2018 /CNW/ - Today, Loblaw Companies Limited (TSX: L) ("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 2024 senior unsecured notes that will bear interest at a rate of 3.918% per annum and will mature on June 10, 2024 and (ii) $400 million aggregate principal amount of series 2028 senior unsecured notes that will bear interest at a rate of 4.488% per annum and will mature on December 11, 2028 (collectively, the "Notes").

The Notes are being offered on an agency basis by a syndicate of agents led by TD Securities, BMO Nesbitt Burns, CIBC World Markets and RBC Dominion Securities. Subject to customary closing conditions, the Offering is expected to close on December 10, 2018.

The net proceeds of the Offering will be used by the Company to partially fund the redemption of its outstanding $800 million aggregate principal amount of 3.748% senior unsecured notes maturing March 12, 2019 and for other general corporate purposes.

It is a condition of closing of the Offering that the Notes be rated at least "BBB" 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 2,400 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate-owners employ approximately 200,000 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 three of Canada's top consumer brands in Life Brand®, 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 2018 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