DBRS Finalizes Provisional Rating of BBB Stable on METRO INC.’s New Debt Issuance

DBRS Limited (DBRS) has today finalized its provisional rating of BBB with a Stable trend on METRO INC.’s (Metro or the Company) Series C Notes and Series D Notes issuance totalling $600 million, which closed on December 1, 2014.

The senior unsecured debt issuance is comprised of the following two tranches:

(1) $300 million, 3.20% Series C Notes, due December 1, 2021.
(2) $300 million, 5.03% Series D Notes, due December 1, 2044

The Series C Notes and Series D Notes will be direct unsecured obligations of the Company and will rank equally and pari passu with all other existing and future unsecured unsubordinated indebtedness of Metro.

The net proceeds from the Series C Notes and Series D Notes will be used for working capital and other general corporate purposes, including repaying or refinancing the following existing indebtedness: (i) financing the redemption and retirement of a portion or all of Metro’s issued and outstanding 4.98% medium term notes due October 15, 2015, and (ii) repaying amounts outstanding under Metro’s Revolving Credit Facility.

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

The applicable methodology is Rating Companies in the Merchandising Industry (October 2014), which can be found on our website under Methodologies.

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.