Business
Sobeys Announces Pricing of $300.0 Million Notes Offering
STELLARTON, NS , July 9, 2014 /CNW/ - Sobeys Inc., wholly-owned subsidiary of Empire Com...
About this update from Empire Co Ltd Class A
[{"type":"text","content":"\n\n\nSTELLARTON, NS, July 9, 2014 /CNW/ - Sobeys Inc., wholly-owned\n subsidiary of Empire Company Limited, announced today that it has\n priced an offering of $300.0 million aggregate principal amount of\n floating rate senior unsecured Notes due July 14, 2016. The Notes are\n being offered through an agency syndicate consisting of Scotia Capital\n Inc. and BMO Nesbitt Burns Inc. as co-lead private placement agents,\n and including CIBC World Markets Inc., National Bank Financial Inc. and\n TD Securities Inc. The offering is expected to close on July 14, 2014,\n subject to customary closing conditions.\n\n\nThe Notes will be issued at par for aggregate gross proceeds of $300.0\n million and will bear interest at a rate equal to the 3-month bankers'\n acceptance rate (CDOR) plus 63 basis points (or 0.63%), to be set\n quarterly on the 14th day of July, October, January and April of each\n year. The interest rate for the initial quarterly period will be set on\n the expected closing date of July 14, 2014. Interest will be payable in\n cash quarterly, in arrears, over the two-year term on the 14th day of\n July, October, January and April of each year, commencing October 14,\n 2014.\n\n\nSobeys intends to use the net proceeds of the offering to repay\n indebtedness outstanding under its existing non-revolving, amortizing\n term credit facility.  Immediately following Sobeys' acquisition of the\n Canada Safeway business on November 4, 2013, the amount outstanding\n under this credit facility was $1,825.0 million.  The current amount\n outstanding on this credit facility is $1,325.0 million and is expected\n to reduce to approximately $1,025.0 million as a result of the Notes\n offering.\n\n\nThe Notes are being offered in Canada on a private placement basis in\n reliance upon exemptions from the prospectus requirements under\n applicable securities legislation. The Notes have not been and will not\n be qualified for sale to the public under applicable securities laws in\n Canada and, accordingly, any offer and sale of the Notes in Canada will\n be made on a basis which is exempt from the prospectus requirements of\n such securities laws. The Notes have not been and will not be\n registered under the United States Securities Act of 1933, as amended\n (the \"U.S. Securities Act\"), or the securities laws of any other\...