DBRS Assigns Rating of A (low) to Shoppers Drug Mart’s New Debt Issuance, Stable Trend

DBRS has today assigned a rating of A (low) with a Stable trend to Shoppers Drug Mart Corporation’s (Shoppers or the Company) Series 5 and Series 6 medium-term notes (MTN) issuance totalling $500 million, which was announced earlier today.

The issuance is made up of the following two tranches (collectively, the Notes):

(1) $225 million 2.01% Series 5 MTN, maturing May 24, 2016.

(2) $275 million 2.36% Series 6 MTN, maturing May 24, 2018.

The Notes will be unsecured obligations ranking pari passu with the Company’s other senior unsecured indebtedness. Net proceeds of this issuance are expected to be used to refinance existing indebtedness, including the repayment of all amounts outstanding under the Company’s $450 million aggregate principal amount of 4.99% unsecured Series 2 MTN due June 3, 2013.

The issuance of the Notes is expected to close on or about May 21, 2013.

Notes:
All figures are in Canadian dollars unless otherwise noted

The applicable methodology is Rating Companies in the Merchandising Industry, which can be found on our website under Methodologies.