TORONTO, Sept. 12, 2023 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) ("CTC") today announced the pricing of a private placement offering of C$600 million aggregate principal amount of unsecured medium term notes, consisting of C$400 million aggregate principal amount of 5.372% Series G Unsecured Medium Term Notes due September 16, 2030 (the "Series G Notes") and C$200 million aggregate principal amount of Floating Rate Series H Unsecured Medium Term Notes due September 14, 2026 (the "Series H Notes", and together with the Series G Notes, the "Notes"). The Series G Notes were priced at par, for an effective yield of 5.372% per annum if held to maturity. The Series H Notes were priced at par and bear interest at a per annum rate of Daily Compounded CORRA plus 1.00% payable quarterly. The offering is expected to close on or about September 14, 2023.
It is expected that the Notes will be rated "BBB", with a stable trend, by DBRS Limited and "BBB", by S&P Global Ratings.
CTC intends to use the net proceeds from the offering and sale of the Notes for the repayment of short-term borrowings and general corporate purposes.
BMO Capital Markets, CIBC World Markets and RBC Capital Markets acted as joint bookrunners for the offering of the Notes.
The Notes are being offered on a private placement basis in each of the provinces of Canada in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or to U.S. persons or in any jurisdiction in which such offering, solicitation or sale would be unlawful.
The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered, sold or delivered in the United States of America or its territories or possessions or to U.S. persons (as defined in Regulation S under the U.S. Securities Act).
About Canadian Tire Corporation
Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC", is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark's, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands. The company's close to 1,700 retail and gasoline outlets are supported and strengthened by CTC's Financial Services division and the tens of thousands of people employed across Canada and around the world by CTC and its local dealers, franchisees and petroleum retailers. In addition, CTC owns and operates Helly Hansen, a leading technical outdoor brand based in Oslo, Norway. For more information, visit Corp.Canadiantire.ca.
Forward-Looking Statements
This press release contains forward-looking statements which reflect management's expectations related to expected future events including, but not limited to, statements relating to CTC's expectations with respect to the offering (including closing of the offering and the expected timing thereof), the intended use of proceeds from the offering and the credit ratings of the Notes. This forward-looking information and the forward-looking information incorporated by reference typically contains words such as "expects", "anticipates", "plans", "believes", "estimates", "intends", "projects", "seeks", "likely", "potential" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". These forward-looking statements are not facts, but only reflections of management's estimates and expectations. Although CTC believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations as set forth in such forward-looking statements for a variety of reasons, including market and general economic conditions, risks and uncertainties inherent to the offering and the risks and uncertainties discussed in disclosure materials filed from time to time by CTC with Canadian securities regulatory authorities, including under section 10.0 "Key Risks and Risk Management" of CTC's Second Quarter 2023 Management's Discussion and Analysis (including the information incorporated therein), as well as CTC's other public filings available at https://www.sedarplus.ca and at https://investors.canadiantire.ca.
The forward-looking statements included in this press release are made only as of the date hereof and CTC does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as is required by applicable securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events contained in these forward-looking statements may or may not occur. CTC cannot assure that projected results or events will be achieved.
SOURCE CANADIAN TIRE CORPORATION, LIMITED
