Tim Hortons Prices Offering Of C$450 Mln 4.52% Notes Due December 1, 2023

(RTTNews) - Tim Hortons Inc. (THI.TO) (THI) Wednesday said it has priced an offering of C$450 million principal amount of 4.52 percent senior unsecured notes due December 1, 2023. The offering is expected to close on November 29.

The notes are being offered in Canada on a private placement basis. They will bear interest at a fixed annual coupon rate of 4.52 percent over the 10-year term.

The notes will rank pari passu with all other senior unsecured and unsubordinated indebtedness of the company, except as to any sinking fund and statutorily preferred exceptions.

Net proceeds from the offering are intended to be used primarily to repay debt 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 includes Citigroup Global Markets Canada Inc.