Loblaw Companies Limited Announces Preferred Share Offering

TORONTO, ONTARIO--(Marketwired - June 1, 2015) -

NOT TO BE DISTRIBUTED OVER U.S. WIRE SERVICES

Loblaw Companies Limited (TSX:L) today announced a domestic public offering of 6 million cumulative Second Preferred Shares, Series B (the "Preferred Shares Series B") at a price of $25.00 per share, to yield 5.30% per annum, for an aggregate gross amount of $150 million.

Loblaw has agreed to sell the Preferred Shares Series B to a syndicate of underwriters co-led by RBC Capital Markets, Scotiabank and TD Securities Inc. on a bought deal basis. Loblaw has granted to the underwriters an option to purchase an additional $50 million of the Preferred Shares Series B at any time up to 48 hours prior to closing.

The Preferred Shares Series B will be offered by way of prospectus supplement under the short form base shelf prospectus of Loblaw dated March 19, 2015. The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada.

Loblaw also announced that it intends to redeem all of its outstanding Second Preferred Shares, Series A (TSX:L.PR.A) (the "Preferred Shares Series A") for cash on July 31, 2015 ("redemption date"). The redemption price for each Preferred Share Series A will be $25.00. Holders of Preferred Shares Series A will separately receive all accrued and unpaid dividends outstanding on the redemption date. Loblaw intends to use the net proceeds of the issue of Preferred Shares Series B to partially fund the redemption of its Preferred Shares Series A. The offering is expected to close on or about June 9, 2015.

The Preferred Shares Series B have not been and will not be registered under the United States Securities Act of 1933, as amended, or under any state securities laws, and may not be offered, sold, directly or indirectly, or delivered within the United States of America and its territories and possessions or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under such Act) absent registration or an applicable exemption from the registration requirements of such Act. This release does not constitute an offer to sell or a solicitation to buy securities in the United States, which may be made only by means of a prospectus.

About Loblaw Companies Limited

Loblaw Companies Limited is Canada's food and pharmacy leader, the nation's largest retailer, and the majority unitholder of Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, banking, and wireless mobile products and services. With more than 2,300 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate-owners employ approximately 192,000 full and part-time employees, making it one of Canada's largest private sector employers.

Loblaw's purpose - Live Life Well - puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,050 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at more than 1,250 Shoppers Drug Mart and Pharmaprix locations and more than 500 Loblaw locations; no-fee banking with PC Financial; affordable Joe Fresh fashion and family apparel; and three of Canada's top consumer brands in LifeBrand®, noname® and President's Choice®. Through the PC Plus™ and Shoppers Optimum® loyalty programs, more than one in every three Canadians are rewarded for shopping with the companies.

For more information, visit Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedar.com.