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Canadian Tire Corporation Prices Aggregate C$650 Million Unsecured Medium Term Notes Offering

June 11, 2018

TORONTO, June 11, 2018 /CNW/ - Canadian Tire Corporation, Limited ("CTC") today announced the pricing of a private placement offering of C$650 million aggregate principal amount of unsecured medium term notes, consisting of C$250 million aggregate principal amount of 2.646% Series E Unsecured Medium Term Notes due July 6, 2020 (the "Series E Notes") and C$400 million aggregate principal amount of 3.167% Series F Unsecured Medium Term Notes due July 6, 2023 (the "Series F Notes" together with the Series E Notes, the "Notes"). The Series E Notes were priced at par, for an effective yield of 2.646% per annum if held to maturity. The Series F Notes were priced at par, for an effective yield of 3.167% per annum if held to maturity. The offering is expected to close on or about July 3, 2018.

It is expected that the Notes will be rated "BBB (high)", with a stable trend, by DBRS Limited and "BBB+", with a stable trend, by S&P Global Ratings, acting through Standard & Poor's Rating Services (Canada), a business unit of S&P Global Canada Corp.

CTC intends to use the net proceeds of the offering to fund a portion of the purchase price of the previously announced acquisition of Helly Hansen (the "Acquisition"), to repay indebtedness and/or for general corporate purposes.

The Notes will be subject to a special mandatory redemption in the event that the Acquisition has not occurred on or prior to 5:00 p.m. (Toronto time) on August 31, 2018 (the outside date under the acquisition agreement (the "Acquisition Agreement")) (or such later outside date as agreed to in accordance with the Acquisition Agreement, which later date shall not be later than 60 days after August 31, 2018), or if, prior to such time, the Acquisition Agreement is terminated or if CTC delivers notice that it does not intend to proceed with the Acquisition. The redemption price for any special mandatory redemption will be 100% of the aggregate principal amount of the Notes, together with accrued and unpaid interest on the Notes from and including the date of settlement up to but not including the date of the special mandatory redemption.

RBC Capital Markets and BMO Capital Markets acted as joint bookrunners for the offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.

The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered, sold or delivered in the United States of America or its territories or possessions or to U.S. persons (as defined in Regulation S under the U.S. Securities Act). The information in this press release is not complete and may be changed. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes in the United States or to U.S. persons or in any other jurisdiction where it is unlawful to do so.

About Canadian Tire Corporation

Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC", is a family of businesses that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark's, a leading source for casual and industrial wear; Pro Hockey Life, the world's largest hockey centric retailer; and FGL (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere), which offers the best active wear brands. The approximately 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across the country by the Company and its local dealers, franchisees and petroleum retailers. For more information, visit Corp.CanadianTire.ca.

Forward‑Looking Statements

This press release contains forward-looking statements which reflect management's expectations related to expected future events including, but not limited to, statements relating to CTC's expectations with respect to the offering and the intended use of proceeds thereof, the credit ratings of the Notes and the Acquisition. This forward-looking information and the forward-looking information incorporated by reference typically contains words such as "expects", "anticipates", "plans", "believes", "estimates", "intends", "projects", "seeks", "likely", "potential" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". These forward-looking statements are not facts, but only reflections of management's estimates and expectations. Although CTC believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations as set forth in such forward-looking statements for a variety of reasons, including market and general economic conditions, risks and uncertainties inherent to the offering and the Acquisition and the risks and uncertainties discussed in disclosure materials filed from time to time by CTC with Canadian securities regulatory authorities, including under the section "Enterprise Risk Management" of CTC's Management's Discussion and Analysis for the year ended December 30, 2017.

The forward-looking statements included in this press release are made only as of the date hereof and CTC does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events contained in these forward-looking statements may or may not occur. CTC cannot assure that projected results or events will be achieved.


Media: Andrea Van Vugt, 416-480-8514, andrea.vanvugt@cantire.com; Investors: Lisa Greatrix, 416-480-8725, lisa.greatrix@cantire.com
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