Business
Sobeys Inc. Announces Pricing of $1.0 Billion Notes Offering
NOT FOR DISTRIBUTION IN THE U.S. STELLARTON, NS, July 30, 2013 /CNW/ - Sobeys Inc. ...
About this update from Empire Co Ltd Class A
[{"type":"text","content":"\n\n\nNOT FOR DISTRIBUTION IN THE U.S.\n\n\nSTELLARTON, NS, July 30, 2013 /CNW/ - Sobeys Inc. (\"Sobeys\" or the \"Company\") is pleased to announce today that it has entered into an underwriting\n agreement to sell $500 million aggregate principal amount of 3.52\n percent Notes, Series 2013-1 due August 8, 2018 (the \"Series 2013-1 Notes\") and $500 million aggregate principal amount of 4.70 percent Notes,\n Series 2013-2 due August 8, 2023 (the \"Series 2013-2 Notes\" and together with the Series 2013-1 Notes, the \"Notes\") to a syndicate of underwriters, led by Scotiabank and including\n National Bank Financial Inc., TD Securities Inc., BMO Capital Markets,\n CIBC and RBC Capital Markets (the \"Underwriters\"). The Series 2013-1 Notes will be issued at $999.59 per $1,000\n principal amount and the Series 2013-2 Notes will be issued at $1,000\n per $1,000 principal amount, for aggregate gross proceeds of $1.0\n billion (the \"Offering\").\n\n\nThe Offering is expected to close on or about August 8, 2013 and is\n subject to customary closing conditions.\n\n\nUpon completion of the Offering, the net proceeds from the sale of the\n Notes will be held in escrow by an escrow agent pending the\n satisfaction of the conditions to closing, among other things (the \"Escrow Release Conditions\"), in connection with Sobeys' previously announced acquisition of\n substantially all of the assets and select liabilities of Canada\n Safeway Limited (the \"Acquisition\"). If the Escrow Release Conditions are satisfied on or before 5:00\n p.m. (Eastern Standard Time) on March 31, 2014 (the \"Escrow Release Deadline\"), Sobeys will use the net proceeds from the Offering to partially fund\n the Acquisition.  Attractive market conditions provided the opportunity\n for Sobeys to issue more Notes than initially contemplated. The\n additional proceeds raised in the Offering will be used to fund a\n larger portion of the Acquisition, reducing the amount to be drawn on\n credit facilities that will be made available to the Company at closing\n of the Acquisition.\n\n\nIf the Escrow Release Conditions are not satisfied on or before the\n Escrow Release Deadline or if Sobeys delivers to the Underwriters and\n the escrow agent a notice that the Acquisition has been terminated, the\n Notes will be subject to a special mandatory redemption. The redempt...