Quick Stats

Quick Stats

    You are here

    Loblaw to Sell Shares

    The Canadian grocer is selling 9 million shares to a syndicate of underwriters.

    Loblaw Cos. Ltd. said it is making a domestic public offering of 9 million cumulative redeemable convertible second preferred shares, series A, for $25 per share, to yield 5.95 percent annually, for an aggregate gross amount of $225 million.

    The Brampton, Ont.-based grocer has agreed to sell the shares to a syndicate of underwriters co-led by RBC Dominion Securities, Inc. and CIBC World Markets, Inc. on a bought-deal basis. Loblaw has granted to the underwriters an option to buy an additional $75 million of the shares at any time up to 48 hours before closing.

    The Preferred Shares Series A will be offered via prospectus supplement under Loblaw's short-form base shelf prospectus of June 5, 2008. The prospectus supplement will be filed with securities regulatory authorities in all Canadian provinces.

    The grocer said net proceeds of the issue will be added to its general funds and used for general corporate purposes. The offering is expected to close on or about June 20.

    Loblaw, Canada's largest food distributor and a leading provider of general merchandise products, drug store, and financial products and services, has more than 1,000 corporate and franchised stores across Canada. Loblaw is a subsidiary of George Weston, Ltd.

    Related Content

    Related Content