Metro Inc. Announces Pricing of a Private Placement Offering of CAD 300 Million Aggregate Principal Amount of 1.922% Series J Senior Unsecured Notes Due December 2, 2024
November 22, 2021 at 06:11 pm EST
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METRO INC. announced the pricing of a private placement offering of CAD 300 million aggregate principal amount of 1.922% Series J Senior Unsecured Notes due December 2, 2024 (the Series J Notes). The Series J Notes will carry a coupon of 1.922% and were priced at $1,000 per $1,000 principal amount, for an effective yield of 1.922% per annum if held to maturity. Metro intends to use the proceeds of the offering for the repayment of the Series C senior unsecured notes due December 1, 2021 and for general corporate purposes. In conjunction with this offering, Metro entered into a CAD 300 million interest rate swap effectively locking in a floating rate of interest of 11 basis points (0.11%) over the 3-month bankers' acceptance rate (CDOR) over the life of the Series J Notes. The Series J Notes will be direct unsecured obligations of Metro and will rank pari passu with all other unsecured and unsubordinated indebtedness of Metro. The Series J Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation and have been assigned provisional ratings BBB, with a stable trend, by DBRS Limited, and BBB by Standard & Poor's Ratings Services. Closing of the offering is expected to take place on November 30, 2021.
Metro Inc. is a food and pharmacy retailers and distributors company. The Company, through its activities as a retailer, franchisor or distributor, and manufacturer operates or supplies a network of supermarkets, discount stores and drugstores. It operates 975 food stores under several banners, including Metro, Metro Plus, Super C and Food Basics, as well as 645 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. The Metro banner, with its 328 stores including 120 Metro Plus stores in Quebec is a supermarket chain. The Super C banner operates 102 discount stores in Quebec and offers a range of grocery products. Food Basics is a discount store providing quality products to customers in 143 locations across Ontario. The Food Basics Pharmacy banner is located in 30 Food Basics grocery stores. Its Food Basics Pharmacy is a full-service pharmacy and offers professional services, such as health reminders and medical profiles, among others.
Metro Inc. Announces Pricing of a Private Placement Offering of CAD 300 Million Aggregate Principal Amount of 1.922% Series J Senior Unsecured Notes Due December 2, 2024