METRO INC. announcement



METRO INC.  announced the closing of the previously announced private placement offering of C$300 million aggregate principal amount of 4.657% Series K Senior Unsecured Notes due February 7, 2033 (the “Series K Notes”).

The Series K Notes are being offered through an agency syndicate consisting of BMO Capital Markets, National Bank Financial Inc. and RBC Dominion Securities Inc. as co-lead managers and joint book runners and CIBC World Markets Inc., Desjardins Securities Inc., Scotia Capital Inc., TD Securities Inc. and Casgrain & Company Limited as co-managers.

The Series K Notes, which carry a coupon of 4.657%, were priced at $1,000 per $1,000 principal amount, for an effective yield of 4.657% per annum if held to maturity.

Metro intends to use the proceeds of the offering to repay existing indebtedness under its revolving credit facility and for general corporate purposes.

Considering the bond forward contracts previously entered into, Metro estimates that the effective blended interest rate of the Series K Notes will correspond to approximately 4.71% per annum.

The Series K Notes are direct unsecured obligations of Metro and rank pari passu with all other unsecured and unsubordinated indebtedness of Metro.

The Series K Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation and are rated BBB with a positive trend, by DBRS Limited, and BBB by Standard & Poor’s Ratings Services.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.

The Series K Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered, sold or delivered in the United States of America or its territories or possessions or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. The information in this press release is not complete and may be changed. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Series K Notes in the United States.


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