Canadian Tire Corporation Ltd. announced the pricing of a private placement offering of C$650 million aggregate principal amount of unsecured medium term notes, consisting of C$250 million aggregate principal amount of 2.646 percent series E unsecured medium term notes due July 6, 2020 and C$400 million aggregate principal amount of 3.167 percent series F unsecured medium term notes due July 6, 2023.
The series E notes were priced at par, for an effective yield of 2.646 percent per annum if held to maturity. The Series F Notes were priced at par, for an effective yield of 3.167 percent per annum if held to maturity. The offering is expected to close on or about July 3, 2018.
It is expected that the Notes will be rated “BBB (high)”, with a stable trend, by DBRS Limited and “BBB+”, with a stable trend by S&P Global Ratings, acting through Standard & Poor’s Rating Services ( Canada ), a business unit of S&P Global Canada Corp.
CTC intends to use the net proceeds of the offering to fund a portion of the purchase price of the previously announced acquisition of Helly Hansen, to repay indebtedness and/or for general corporate purposes.
RBC Capital Markets and BMO Capital Markets acted as joint bookrunners for the offering.
Canadian Tire Corporation owns Canadian Tire, Mark’s, Pro Hockey Life and FGL (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere).
