BRAMPTON, ON, June 15 /CNW/ - Loblaw Companies Limited (TSX: L) (the "Company") has agreed to issue $350 million principal amount of Medium Term Notes, Series 2-B pursuant to its Medium Term Notes, Series 2 program. The notes are to be offered through an agency syndicate led by CIBC World Markets Inc. and RBC Dominion Securities Inc. and are expected to be issued on June 18, 2010. The notes will pay a fixed rate of 5.22% per annum until maturity on June 18, 2020. The notes will be unsecured obligations of the Company and will rank equally with all other unsecured indebtedness of the Company that has not been subordinated. The net proceeds of the offering will be used to pre-fund the Company's $350 million of indebtedness maturing in January 2011 and for general corporate purposes.
The Company intends to file a pricing supplement in Canada for this issue pursuant to its short form base shelf prospectus dated June 5, 2008 and its prospectus supplement dated May 5, 2009 in respect of the program. Details of the offering will be set out in the prospectus supplement and the pricing supplement, which will be available on sedar website at www.sedar.com.
The Medium Term Notes, Series 2-B have not been and will not be registered under the United States Securities Act of 1933 and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or an applicable exemption from the registration requirement of such Act. This news release does not constitute an offer to sell or a solicitation to buy the Medium Term Notes, Series 2-B in the United States.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. Loblaw is one of the largest private sector employers in Canada. With more than 1,000 corporate and franchised stores from coast to coast, Loblaw and its franchisees employ over 138,000 full-time and part-time employees. Through its portfolio of store formats, Loblaw is committed to providing Canadians with a wide, growing and successful range of products and services to meet the everyday household demands of Canadian consumers. Loblaw is known for the quality, innovation and value of its food offering. It offers Canada's strongest control (private) label program, including the unique President's Choice(R), no name(R) and Joe Fresh Style(R) brands. In addition, the Company makes available to consumers President's Choice Financial(R) services and offers the PC(R) points loyalty program.
SOURCE Loblaw Companies Limited
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