TORONTO, Nov. 26 /CNW/ - Canadian Tire Corporation, Limited (CTC, CTC.a) today announced that its committed bank lines have been increased by $500 million to a total of $1.15 billion. In addition, Canadian Tire expects to add a further $110 million in committed lines for which bank credit approval has been received and documentation is in process. This will result in $1.26 billion in committed bank lines which are not subject to any market disruption clause. The lines are provided by ten domestic and international banks reflecting the strong support for Canadian Tire and the Glacier Credit Card Trust commercial paper program.
The additional lines increase the Company's flexibility to support its growing retail and financial services businesses.
In addition to the above noted lines, Canadian Tire has the following sources of financing:
1. A $750 million shelf prospectus for its Medium Term Note Program, $300 million of which was issued successfully in an oversubscribed transaction in October 2007; 2. An $800 million Canadian Tire commercial paper program that is fully supported by the aforementioned committed bank lines. Approximately $250 million is currently outstanding with strong investor demand at cost-effective rates;
Glacier Credit Card Trust commercial paper program has access to $760 million of the total Canadian Tire committed lines. Glacier commercial paper continues to be rolled over on an as needed basis, albeit at higher credit spreads consistent with current difficult market conditions for structured debt. Currently $140 million is outstanding and backed by the bank credit lines.
The $472.5 million Glacier Credit Card Trust Medium Term Note that matures in December 2007 has been funded by a combination of the $300 million Canadian Tire note issued in October 2007, the Canadian Tire commercial paper program and operating cash flows.
Canadian Tire recently received confirmation from its rating agencies on its various funding programs at - DBRS: A (low) / R-1(low) and Standard & Poor's: BBB+ / A-1 (LOW) - all with a stable outlook.
Overall, Canadian Tire believes it is in a strong position with respect to its financial flexibility and is well positioned to support its proposed growth agenda even if continued challenging market conditions continue.
Canadian Tire Corporation, Limited (TSX: CTC.a, CTC), operates more than 1,100 general merchandise and apparel retail stores, gas stations and car washes in an inter-related network of businesses engaged in retail, financial services and petroleum. Canadian Tire Retail, Canada's most shopped general merchandise retailer, with 468 stores operated by Associate Dealers across Canada offers a unique mix of products and services through three specialty categories in which the organization is the market leader - Automotive, Sports and Leisure, and Home Products. www.canadiantire.ca offers Canadians the opportunity to shop online. PartSource is an automotive parts specialty chain with 68 stores designed to meet the needs of purchasers of automotive parts - professional automotive installers and serious do-it-yourselfers. Canadian Tire Petroleum is one of the country's largest and most productive independent retailers of gasoline, operating 265 gas bars, 257 convenience stores and kiosks, and 75 car washes. Mark's Work Wearhouse is one of the country's leading apparel retailers operating 348 stores in Canada. Under the Clothes that Work(TM) marketing strategy, Mark's sells apparel and footwear in work, work-related, casual and active-wear categories, as well as health-care and business-to-business apparel. www.marks.com offers Canadians the opportunity to shop online. Canadian Tire Financial Services manages over 4 million Canadian Tire MasterCard accounts and markets related financial products and services for retail and petroleum customers. Canadians can also access Financial Services online at www.ctfs.com. Over 50,000 Canadians work across Canadian Tire's organization from coast-to-coast in the enterprise's retail, financial services, and petroleum businesses.