(All amounts in Canadian dollars)
/NOT FOR RELEASE OVER U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
U.S./
OAKVILLE, ON, March 25, 2014 /CNW/ - Tim Hortons Inc. (TSX: THI, NYSE:
THI) today announced that it has priced an offering of $450 million
principal amount of 2.85% senior unsecured notes due April 1, 2019 (the
"Notes"). The offering is expected to close March 28 2014.
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 2.85% over the 5-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.
In August 2013, the Board of Directors of Tim Hortons approved a
recapitalization of the Company's balance sheet, including the issuance
of $900 million of additional debt. That debt target is expected to be
met through a combination of the current offering and the previous
issuance in November 2013 of $450 million of 4.52% senior unsecured
notes due December 1, 2023.
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 Canada Inc.
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
authority.
Safe Harbor Statement
Certain information in this news release, particularly information
regarding future 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 2013 Annual Report on Form 10-K filed on February 25th, 2014 with the U.S. Securities and Exchange Commission and the 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: (i) prospects and execution risks concerning our growth
strategy; (ii) the absence of an adverse event or condition that
damages our strong brand position and reputation; (iii) 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; (iv) cost and availability of commodities; (v) the
absence of an adverse event or condition that disrupts our distribution
operations or impacts our supply chain; (vi) continuing positive
working relationships with the majority of the Company's restaurant
owners; (vii) the absence of any material adverse effects arising as a
result of litigation; (viii) there being no significant change in the
Company's ability to comply with current or future regulatory
requirements; (ix) the ability to retain our senior management team or
the inability to attract and retain new qualified personnel; * the
Company's ability to maintain investment grade credit ratings; (xi) the
Company's ability to obtain financing on favorable terms; and (xii)
general worldwide economic conditions.
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 December 29, 2013, Tim Hortons had 4,485 systemwide restaurants,
including 3,588 in Canada, 859 in the United States and 38 in the Gulf
Cooperation Council. More information about the Company is available at
www.timhortons.com.
SOURCE Tim Hortons
<p> Olga Petrycki: (905) 339-5960 or <a href="mailto:investor_relations@timhortons.com">investor_relations@timhortons.com</a> </p>