Loblaw to Back Shoppers Drug Mart Deal With $5.1 Billion of Debt
The funding will consist of a $3.5 billion term portion and a $1.6 billion bridge loan that will be replaced primarily with unsecured notes, according to a statement today from the companies. Bank of America Corp. is providing the debt, they said.
Loblaw, based in Brampton, Ontario, agreed to buy Toronto-based Shoppers Drug Mart for C$12.4 billion ($11.9 billion) in the biggest takeover of a Canadian retailer.
Bridge loans usually mature in one year and are often used as backstops to bond offerings or longer-dated bank debt. In a term loan, money can’t be borrowed again once it’s repaid.
To contact the reporter on this story: Christine Idzelis in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Faris Khan at email@example.com