By Rebecca Melvin
New York, June 11 - Canada's Loblaw Cos. Ltd. priced C$225 million of convertible second preferred shares at $25 per share with a dividend of 5.95%, according to a news release.
The 9 million cumulative series A preferred shares were sold on a bought deal basis to a syndicate of underwriters co-led by RBC Dominion Securities Inc. and CIBC World Markets Inc.
Loblaw has granted to the underwriters an option to purchase an additional C$75 million of the preferred shares.
The preferreds will be offered under the short form base shelf prospectus.
Proceeds will be added to the general funds of the company and used for general corporate purposes.
Toronto-based Loblaw, a subsidiary of George Weston Ltd., is a distributor of food and general merchandise.
| Issuer: | Loblaw Cos. Ltd.
|
| Issue: | Convertible second preferred shares
|
| Amount: | C$225 million, or 9 million shares
|
| Greenshoe: | C$75 million
|
| Bookrunners: | Syndicate led by RBC Dominion Securities Inc. and CIBC World Markets Inc.
|
| Dividend: | 5.95%
|
| Price: | Par of $25
|
| Yield: | 5.95%
|
| Pricing date: | June 11
|
| Settlement date: | June 20
|
| Distribution: | Canadian short form base shelf
|
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