Tim Hortons Inc. announces pricing of private offering of $450 million of
senior unsecured notes
(All amounts in Canadian dollars)
/NOT FOR RELEASE OVER U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S./
OAKVILLE, ON, Nov. 27, 2013 /CNW/ - Tim Hortons Inc. (TSX: THI) (NYSE: THI)
today announced that it has priced an offering of $450 million principal
amount of 4.52% senior unsecured notes due December 1, 2023 (the "Notes"). The
offering is expected to close November 29, 2013.
The Notes are being offered in Canada on a private placement basis in reliance
upon exemptions from the prospectus requirements under applicable Canadian
securities legislation. The Notes will bear interest at a fixed annual coupon
rate of 4.52% over the 10-year term. The Notes will rank pari passu with all
other senior unsecured and unsubordinated indebtedness of Tim Hortons, except
as to any sinking fund and statutorily preferred exceptions.
Net proceeds from the offering are intended to be used primarily to repay
indebtedness outstanding under a bridge credit facility, which is available
for general corporate purposes, including share repurchases.
The Notes have been provisionally rated BBB with a Stable trend by DBRS
Limited. The offering is being made through an agency syndicate of dealers
consisting of RBC Dominion Securities Inc., TD Securities Inc. and Scotia
Capital Inc. as joint bookrunners, and also including Citigroup Global Markets
The Notes have not been and will not be qualified for sale to the public under
applicable securities laws in Canada and, accordingly, any offer and sale of
the Notes in Canada will be made on a basis which is exempt from the
prospectus requirements of such securities laws. This news release does not
constitute an offer to sell, or the solicitation of an offer to buy, the
securities in the United States or any other jurisdiction. The securities have
not been and will not be registered under the United States Securities Act of
1933 (the "U.S. Securities Act") or applicable state securities laws and may
not be offered or sold in the United States absent registration or an
exemption from the registration requirement under the U.S. Securities Act and
applicable state securities laws. The securities being offered have not been
approved or disapproved by any Canadian or U.S. securities regulatory
Safe Harbor Statement
Certain information in this news release, particularly information regarding
future economic performance, finances, and plans, expectations and objectives
of management, and other information, constitutes forward-looking information
within the meaning of Canadian securities laws and forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
We refer to all of these as forward-looking statements. Various factors
including competition in the quick service segment of the food service
industry, general economic conditions and others described as "risk factors"
in the Company's 2012 Annual Report on Form 10-K filed February 21, 2013, and
our Quarterly Report on Form 10-Q filed on November7, 2013 with the U.S.
Securities and Exchange Commission and Canadian Securities Administrators,
could affect the Company's actual results and cause such results to differ
materially from those expressed in, or implied by, forward-looking statements.
As such, readers are cautioned not to place undue reliance on forward-looking
statements contained in this news release, which speak only as to management's
expectations as of the date hereof.
Forward-looking statements are based on a number of assumptions which may
prove to be incorrect, including, but not limited to, assumptions about: the
absence of a material increase in competition or in volume or type of
competitive activity within the quick service restaurant segment of the food
service industry; the absence of an adverse event or condition that damages
our strong brand position and reputation; our ability to obtain financing on
favourable terms; our ability to maintain investment grade credit ratings;
prospects and execution risks concerning our U.S. market strategy; general
worldwide economic conditions; cost and availability of commodities; the
ability of the Company to retain our senior management team or the inability
to attract and retain qualified personnel; continuing positive working
relationships with the majority of the Company's restaurant owners; the
absence of any material adverse effects arising as a result of litigation; and
there being no significant change in the Company's ability to comply with
current or future regulatory requirements.
We are presenting this information for the purpose of informing you of
management's current expectations regarding these matters, and this
information may not be appropriate for any other purpose. We assume no
obligation to update or alter any forward-looking statements after they are
made, whether as a result of new information, future events, or otherwise,
except as required by applicable law. Please review the Company's Safe
Harbor Statement at www.timhortons.com/ca/en/about/safeharbor.html.
Tim Hortons Inc. Overview
Tim Hortons is one of the largest publicly-traded restaurant chains in North
America based on market capitalization, and the largest in Canada. Operating
in the quick service segment of the restaurant industry, Tim Hortons appeals
to a broad range of consumer tastes, with a menu that includes premium coffee,
hot and cold specialty drinks (including lattes, cappuccinos and espresso
shots), specialty teas and fruit smoothies, fresh baked goods, grilled Panini
and classic sandwiches, wraps, soups, prepared foods and other food
products. As of September29, 2013, Tim Hortons had 4,350 systemwide
restaurants, including 3,500 in Canada, 817 in the United States and 33 in the
Gulf Cooperation Council. More information about the Company is available at
SOURCE Tim Hortons
Scott Bonikowsky, (905) 339-6186 firstname.lastname@example.org
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