DBRS Assigns Rating of BBB to Loblaw’s New Debt Issuance, Stable Trend

DBRS has today assigned a rating of BBB with a Stable trend to Loblaw Companies Limited’s (Loblaw) multi-tranche debt issue totalling $1.6 billion announced on September 5, 2013.

The senior unsecured debt issuance is made up of the following tranches (collectively, the Notes):

(1) $800 million 3.748% senior unsecured notes due March 2019

(2) $800 million 4.860% senior unsecured notes due September 2023

The Notes will be unsecured obligations ranking pari passu with Loblaw’s other unsecured and unsubordinated indebtedness. Proceeds are expected to be first held in escrow and will ultimately be used to partially fund Loblaw’s previously announced acquisition of Shoppers Drug Mart Corporation.

Notes:
All figures are in Canadian dollars unless otherwise noted.

This rating is endorsed by DBRS for use in the European Union.

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