The Jean Coutu Group (PJC) Inc.
TSX : PJC.A

The Jean Coutu Group (PJC) Inc.

June 04, 2007 14:31 ET

The Jean Coutu Group Announces Early Acceptance of 7.625% Unsecured Senior Notes Due 2012 Tendered Pursuant to its Tender Offer

LONGUEUIL, QUEBEC--(Marketwire - June 4, 2007) - The Jean Coutu Group (PJC) Inc. ("The Jean Coutu Group" or the "Company") (TSX:PJC.A) announced today that it is exercising its right to accept for early payment 7.625% Unsecured Senior Notes due 2012 (the "Notes") (CUSIP No. 47215QAF1) tendered by 9:00 a.m. New York City time, on June 4, 2007. Pursuant to the terms of Offer to Purchase and Consent Solicitation Statement dated February 20, 2007 and the related Consent and Letter of Transmittal (the "Offer Documents"), the Company has accepted for purchase and paid for $349,990,000 of the outstanding $350 million principal amount of the Notes.

In connection with the tender offer for the Notes, The Jean Coutu Group received the required consents with respect to the Notes to eliminate substantially all of the restrictive covenants and certain events of default included in the Indenture under which the Notes were issued. As a result, the tender and consent condition has been satisfied with respect to the Notes. In addition, The Jean Coutu Group also announced that all conditions, including the transaction condition, have been satisfied. Accordingly, the supplemental indenture relating to the Notes containing the proposed amendments was executed by The Jean Coutu Group and the Trustee under the Indenture and generally became operative immediately prior to The Jean Coutu Group acceptance for purchase of the Notes tendered to date.

As previously announced the offer expiration date for the cash tender offer will be 8:00 a.m., New York City time, on June 14, 2007, unless the tender offer is further extended.

The tender offer and consent solicitation is being made solely on the terms and conditions set forth in the Offer Documents as amended hereby and by the Company's March 5, 2007, March 20, 2007, April 4, 2007, April 25, 2007, May 24, 2007, May 29, 2007, May 30, 2007 and May 31, 2007 press releases.

The Jean Coutu Group has retained J.P. Morgan Securities Inc. to act as Dealer Manager in connection with the tender offer and consent solicitation. Questions about the tender offer and the consent solicitation may be directed to J.P. Morgan Securities Inc. at (866) 834-4666 (toll free), or to Global Bondholder Services Corporation, the information agent for the tender offer and consent solicitation, at (866) 540-1500 (toll free). Copies of the Offer to Purchase and other related documents may be obtained from the information agent.

Under no circumstances shall this press release constitute an offer to buy or the solicitation of an offer to sell the Notes or any other securities of The Jean Coutu Group. It also is not a solicitation of consents to the proposed amendments to the indenture relating to the Notes. No recommendation is made as to whether holders of the Notes should tender their Notes or give their consents.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "projects" or "anticipates" or similar expressions that concern our strategy, plans or intentions. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those expected. While the Company believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect the Company's actual results. The Company undertakes no obligation to update any forward-looking statements contained in this press release.

About The Jean Coutu Group

The Jean Coutu Group (PJC) Inc. operates a network of 326 franchised drugstores in Canada located in the provinces of Quebec, New Brunswick and Ontario (under the banners of PJC Jean Coutu, PJC Clinique and PJC Sante Beaute) and employs more than 15,000 people. The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Company holds a significant interest in Rite Aid Corporation, one of the United States' leading drugstore chains, with annual revenues of more than $27 billion and more than 5,000 drugstores in 31 states and the District of Columbia.

Contact Information

  • Source:
    The Jean Coutu Group (PJC) Inc.
    or
    Information:
    Michael Murray
    Director, Investor Relations
    450-646-9611, Ext. 1068
    or
    Helene Bisson
    Director, Public Relations
    450-646-9611, Ext. 1165
    Toll free: 1-866-878-5206