Shoppers Drug Mart to hold bank meeting for $435 million term loan later this week

By Sara Rosenberg

New York, April 30 - Shoppers Drug Mart Corp. is scheduled to hold a bank meeting later this week for its new US$435 million term loan B, according to a syndicate source. CIBC is the lead bank on the deal. Closing on the loan is expected to occur around the end of May.

The new term loan will expire in approximately 6.75 years and has an interest rate of Libor plus 225 basis points, the syndicate source said. Proceeds will be used to refinance existing debt. Basically all assets will be used to secure the loan.

Moody's Investors Service rates the North York, Ontario drugstore chain's loan Ba1. A rating from Standard & Poor's is still pending as the company is being reviewed for possible upgrade, according to the syndicate source.

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