RONA sets bid range in Dutch auction tender offer for 5.4% debentures

By Jennifer Chiou

New York, Nov. 15 - RONA Inc. announced an acceptable bid range of C$1,001.19 to C$1,022.73 for each C$1,000 of notes in its modified Dutch auction tender offer for up to C$200 million of its C$400 million of 5.4% debentures due Oct. 20, 2016.

The offer ends at 5 p.m. ET on Nov. 22.

The reference yield as of 9 a.m. ET on Nov. 15 for the 2.75% Government of Canada bond due Sept. 1, 2016 was 1.374%. The range was determined using the reference yield plus 350 basis points to 400 bps.

Participating holders must specify a bid price in C$0.01 increments within the cited range. Those who tender without picking a bid price will be deemed to have specified C$1,001.19, the lowest price.

As announced on Nov. 3, this is the first of two offers to purchase up to C$200 million overall of the debentures for cash.

The second offer will open on Nov. 23. The consideration in the subsequent offer will be the consideration in the first offer less C$30 for each C$1,000 principal amount of accepted debentures.

Settlement in the first offer is anticipated for Nov. 29. Dec. 12 is the settlement date for the next offer.

Scotia Capital Inc. is the dealer manager (888 776-3666 or 416 863-7257). Kingsdale Shareholder Services Inc. is the information agent (866 851-2743 or 416 867-2272).

Questions may be directed to Computershare Investor Services Inc. at 800 564-6253 or 514 982-7555.

Boucherville, Quebec-based RONA is Canada's largest hardware and gardening retailer and distributor.

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