Shoppers Drug Mart initiates refinancing measures

TORONTO Shoppers Drug Mart on Friday announced that it has entered into a new senior unsecured 364-day credit facility in the amount of up to $200 million. The bank credit facility is available in a single drawdown to provide for a partial refinancing of the company’s $300 million of medium term notes maturing Oct. 24, 2008.

Should Shoppers Drug Mart elect to utilize all or part of this facility to refinance a portion of the $300 million in maturing medium term notes, the balance of funds required to complete the refinancing is expected to come from existing sources of liquidity, the Canadian drug retailers stated, including funds available to the company under its pre-existing committed $800 million revolving bank credit facility maturing June 6, 2011, and cash provided by operating activities.

On a consolidated basis, after giving effect to the repayment of the maturing medium term notes, no incremental debt of the company is expected to be outstanding as a result of these refinancing activities.