Hudson's Bay Company

Hudson's Bay Company

September 10, 2013 09:13 ET

Hudson's Bay Company Announces Closing of $275 Million Bought Deal Offering of Subscription Receipts

TORONTO, ONTARIO--(Marketwired - Sept. 10, 2013) -


Hudson's Bay Company (TSX:HBC) ("HBC" or the "Company") is pleased to announce that it has closed its previously announced prospectus offering (the "Offering") of 16,050,000 subscription receipts (the "Subscription Receipts"), at a price of $17.15 per Subscription Receipt for gross proceeds of $275,257,500. The Offering was underwritten by a syndicate of underwriters led by RBC Capital Markets, CIBC World Markets Inc., BMO Capital Markets, Merrill Lynch Canada Inc. and TD Securities Inc.

As announced on August 20, 2013, the net proceeds of the Offering will be used to finance a portion of purchase price for the acquisition of Saks Incorporated for approximately US$2.9 billion, including debt (the "Acquisition"). The closing of the Acquisition is expected to occur before the end of the calendar year.

About Hudson's Bay Company

Hudson's Bay Company, founded in 1670, is North America's longest continually operated company. In Canada, HBC operates Hudson's Bay, Canada's largest branded department store with 90 locations, unsurpassed in its fashion, beauty, home and accessory designers and brands, as well as HBC also operates Home Outfitters, Canada's largest home specialty superstore with 69 locations across the country. In the United States, HBC operates Lord & Taylor, a department store with 48 full-line store locations throughout the northeastern United States and in two major cities in the Midwest, and With approximately 29,000 associates in Canada and the U.S., HBC's banners provide stylish, quality merchandise at great value, with a dedicated focus on service excellence. Hudson's Bay Company trades on the Toronto Stock Exchange under the symbol "HBC".

Forward-Looking Statements

Information in this press release that is not current or historical factual information may constitute forward-looking information, including with respect to the timing and completion of the Acquisition. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, the timing and market acceptance of future products, competition in the Company's markets, the growth of certain business categories and market segments and the willingness of customers to shop at the Company's stores, the Company's margins and sales and those of the Company's competitors, the Company's reliance on customers, risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, regulations, competition, seasonality, commodity price and business disruption, the Company's relationships with suppliers and manufacturers, changes to existing accounting pronouncements, the ability of the Company to successfully implement its strategic initiatives, changes in consumer spending, managing HBC's portfolio of brands and HBC's merchandising mix, seasonal weather patterns, economic, social, and political instability in jurisdictions where suppliers are located, increased shipping costs, potential transportation delays and interruptions, the risk of damage to the reputation of brands promoted by the Company and the cost of store network expansion and retrofits, compliance costs associated with environmental laws and regulations, fluctuations in currency and exchange rates, commodity prices, the Company's ability to maintain good relations with its employees, changes in the law or regulations regarding the environment or other environmental liabilities, the Company's capital structure, funding strategy, cost management programs and share price, the Company's ability to integrate acquisitions and the Company's ability to protect its intellectual property.

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