The Jean Coutu Group (PJC) Inc.

The Jean Coutu Group (PJC) Inc.

April 04, 2007 19:15 ET

The Jean Coutu Group Announces Receipt of Requisite Consents in Consent Solicitation for its 8.5% Unsecured Senior Subordinated Notes Due 2014

LONGUEUIL, QUEBEC--(CCNMatthews - April 4, 2007) - The Jean Coutu Group (PJC) Inc. (TSX:PJC.A)("The Jean Coutu Group" or the "Company") announced today that it had received, as of 5:00 p.m., New York City time, on April 4, 2007, tenders and consents from holders of over 92,9% of the outstanding principal amount of its 8.5% Unsecured Senior Subordinated Notes due 2014 (the "Notes") in connection with its previously announced cash tender offer and consent solicitation for Notes.

Having received the requisite consents, The Jean Coutu Group intends to enter into a supplemental indenture with the trustee under the Note indenture to give effect to the proposed amendments, described in the Offer to Purchase and Consent Solicitation Statement dated March 28, 2007 and the related Consent and Letter of Transmittal (the "Offer Documents"). The supplemental indenture will become effective upon execution and delivery by all the parties hereto. However the amendments provided for in the supplemental indenture will not become operative until immediately prior to the Company's acceptance for purchase of at least a majority in aggregate principal amount of the outstanding Notes provided the conditions to the tender offer and the consent solicitation have been satisfied or waived by the Company.

In accordance with the terms of the Offer Documents, tendered Notes may no longer be withdrawn and delivered consents may no longer be revoked, unless the tender offer and the consent solicitation are terminated without any Notes being purchased or the Company is required by law to permit withdrawal or revocation. We shall continue to pay the Consent Payment (as defined in the Offer Documents) to each holder who tenders their Notes prior to 5:00 p.m., New York City time on April 10, 2007, unless extended.

The Company is also amending the Price Determination Date (as defined in the Offer Documents), which will be announced by 5:00 p.m., New York City time, on the business day before such date. Such Price Determination Date will be a date at least one business day before any Early Acceptance Date (as defined in the Offer Documents), and will be at least ten business days prior to the Offer Expiration date, which is currently April 26, 2007.

Holders who have not yet tendered their Notes may tender until 8:00 a.m., New York City time, on April 26, 2007, the Offer Expiration Date, unless the tender offer is extended or earlier terminated by The Jean Coutu Group.

Questions about the tender offer and the consent solicitation may be directed 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 Documents and other related documents may be obtained from the information agent.

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 30, 2007 press release. 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. is the fourth largest drugstore chain in North America and the second largest in both the eastern United States and Canada. The company and its combined network of 2,186 corporate and franchised drugstores (under the banners of Brooks and Eckerd Pharmacy, PJC Jean Coutu, PJC Clinique and PJC Sante Beaute) employ more than 61,000 people.

The Jean Coutu Group's United States operations employ 46,000 people and comprise 1,859 corporate owned stores located in 18 states of the Northeastern, mid-Atlantic and Southeastern United States. The Jean Coutu Group's Canadian operations and franchised drugstores in its network employ over 15,000 people and comprise 327 PJC Jean Coutu franchised stores in Quebec, New Brunswick and Ontario.

Contact Information

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