/NOT TO BE DISTRIBUTED OVER U.S. WIRE SERVICE/
TORONTO, June 11 /CNW/ - Loblaw Companies Limited (TSX: L) today
announced a domestic public offering of 9 million cumulative redeemable
convertible Second Preferred Shares, Series A (the "Preferred Shares Series
A") at a price of $25.00 per share, to yield 5.95% per annum, for an aggregate
gross amount of $225 million.
Loblaw has agreed to sell the Preferred Shares Series A to a syndicate of
underwriters co-led by RBC Dominion Securities Inc. and CIBC World Markets
Inc. on a bought deal basis. Loblaw has granted to the underwriters an option
to purchase an additional $75 million of the Preferred Shares Series A at any
time up to 48 hours prior to closing.
The Preferred Shares Series A will be offered by way of prospectus
supplement under the short form base shelf prospectus of Loblaw Companies
Limited dated June 5, 2008. The prospectus supplement will be filed with
securities regulatory authorities in all provinces of Canada.
The net proceeds of the issue will be added to the general funds of
Loblaw Companies Limited and used for general corporate purposes. The offering
is expected to close on or about June 20, 2008.
The Preferred Shares Series A have not been and will not be registered
under the United States Securities Act of 1933, as amended, or under any state
securities laws, and may not be offered, sold, directly or indirectly, or
delivered within the United States of America and its territories and
possessions or to, or for the account or benefit of, United States persons
except in certain transactions exempt from the registration requirements of
such Act. This release does not constitute an offer to sell or a solicitation
to buy such securities in the United States.
Loblaw Companies Limited is Canada's largest food distributor and a
leading provider of general merchandise products, drugstore and financial
products and services. Loblaw is also one of the largest private sector
employers in Canada, with over 140,000 full-time and part-time employees
executing its business strategy in more than 1,000 corporate and franchised
stores from coast to coast. Loblaw is a subsidiary of George Weston Limited
For further information:
For further information: Inge van den Berg, Vice President, Public
Affairs, Tel: (905) 861-2221, Email: email@example.com