Loblaw Companies to issue $500-million of senior notes

Executive Summary

• Loblaw Companies Ltd. has agreed to issue $500 million in aggregate principal amount of senior unsecured notes via a private placement to qualified accredited investors in Canada.
• The notes carry an interest rate of 4.387% per annum and are scheduled to mature on June 16, 2035.
• Net proceeds will be utilized to repay outstanding indebtedness under the company's syndicated revolving credit facility and for general corporate purposes.

Key Details

• Principal Amount: $500 million aggregate principal amount.
• Instrument Type: Senior unsecured notes.
• Interest Rate: 4.387% per annum.
• Maturity Date: June 16, 2035.
• Pricing: Sold at par.
• Placement Method: Private placement to qualified accredited investors in the provinces of Canada.
• Agents: Syndicate led by CIBC Capital Markets, RBC Capital Markets, TD Securities, BMO Capital Markets, and Scotia Capital.
• Expected Closing Date: December 16, 2025, subject to customary closing conditions.
• Use of Proceeds: Repayment of outstanding indebtedness under the company's syndicated revolving credit facility and for general corporate purposes.
• Credit Rating Conditions: Closing is conditional upon the notes receiving a rating of at least BBB (high) with a positive trend from Morningstar DBRS and at least BBB+ from Standard and Poor's Rating Services.
• Ranking: Unsecured obligations ranking equally with all existing and future unsecured and unsubordinated indebtedness of the company.