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Shoppers Drug Mart makes $500 million debt offering
May 16th, 2013
TORONTO – Shoppers Drug Mart Corp. has issued $500 million (Canadian) in medium-term notes to refinance debt.
Canada's largest drug chain said Wednesday that, in a two-part debt offering, it has priced the issuance of $225 million aggregate principal amount of 2.01% unsecured medium-term notes, Series 5, due May 24, 2016, for net proceeds of $224.39 million.
In addition, the company priced the issuance of $275 million aggregate principal amount of 2.36% unsecured medium-term notes, Series 6, due May 24, 2018, for net proceeds of $273.93 million.
The issuance of the notes is slated to close on or about May 21, according to the company.
"The net proceeds will be used to refinance existing indebtedness, including repayment of all amounts outstanding under the company's $450 million aggregate principal amount of 4.99% unsecured medium-term notes, Series 2, due June 3, 2013," Shoppers Drug Mart said in a statement. "As a result of using the net proceeds to refinance existing indebtedness, the consolidated net debt position of the company is expected to remain substantially unchanged."
As of the end of its 2013 first quarter on March 23, Shoppers Drug Mart had net debt of about $1.32 billion. Its net debt to shareholders equity ratio was 0.31:1.