REFILE-UPDATE 1-Tim Hortons to raise C$100 mln to refinance debt

(Refiles last graph to say shares closed at C$40.54)
* Says priced 4.2 percent note at C$102.273

* Says to use proceeds to refinance debt maturing Feb’11

* Offering to close Dec 1

(Adds details, shares)

Nov 25 (BestGrowthStock) – Tim Hortons Inc (THI.TO: ) said it would
offer C$100 million ($99 million) of senior unsecured notes,
and use the proceeds to refinance the remaining portion of its
existing term debt set to mature in February next year.

Tim Hortons, Canada’s largest restaurant chain, priced the
4.2 percent note due June 1, 2017 at C$102.273 to yield 3.802
percent, or 104 basis points over the Canadian government yield
curve.

The company said the offering, which is expected to close
by Dec 1, is a reopening of a note issued earlier this year and
brings the total amount outstanding to C$300 million.

These notes will have semi-annual interest payments made
equally, it said.

The Oakville, Ontario-based company also said it is
currently in the process of refinancing its bank revolver
facility, maturing Feb. 28, 2011.

It expects to complete the new $250-million revolver
facility with a 4-year term by the end of the year.

Tim Hortons shares, which have gained more than 34 percent
in value in the past one year, ended down 59 Canadian cents at
C$40.54 Thursday on the Toronto Stock Exchange.

($1=$1.01 Canadian)

(Reporting by Arnika Thakur in Bangalore; Editing by Prem
Udayabhanu)

REFILE-UPDATE 1-Tim Hortons to raise C$100 mln to refinance debt