RONA extends Dutch auction tender offer for 5.4% notes, now will purchase up to C$300 million

By Susanna Moon

Chicago, Nov. 23 - RONA Inc. said it extended the modified Dutch auction tender offer for its C$400 million of 5.4% debentures due Oct. 20, 2016 and will now purchase up to C$300 million of the notes.

Holders may now tender notes until 5 p.m. ET on Nov. 28 under the first offer, and settlement will occur on Dec. 1. Tendered notes may no longer be withdrawn.

As of 5 p.m. ET on Nov. 22, C$242,925,000 principal amount of the notes had been tendered under that offer.

As announced on Nov. 3, this is the first of two offers to purchase up to an overall amount of the debentures for cash. The overall amount was originally set at C$200 million.

On Nov. 15 RONA announced an acceptable bid range of C$1,001.19 to C$1,022.73 for each C$1,000 principal amount of notes.

As previously noted, 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 set 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.

The second offer will now open on 9 a.m. ET on Nov. 29 and end at 5 p.m. ET on Dec. 12. The start time was pushed back from Nov. 23. The amount in the subsequent offer will be the amount in the first offer less C$30 for each C$1,000 principal amount of accepted debentures.

Settlement for the second offer will occur on Dec. 19, extended from Dec. 12.

The offer began on Nov. 3, and the first part was originally set to end at 5 p.m. ET on Nov. 22.

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. (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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