Dollarama announces private offering of $525 million senior unsecured notes
Jul 19, 2016, 15:20 ET
/NOT FOR RELEASE OVER US NEWSWIRE SERVICES
OR DISSEMINATION IN THE US/
MONTREAL, July 19, 2016 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it has priced an offering of $525 million aggregate principal amount of 2.337% senior unsecured notes due July 22, 2021 (the "Notes"). The Notes are being offered through an agency syndicate consisting of RBC Capital Markets and CIBC Capital Markets, as joint bookrunners and co-lead private placement agents, and including National Bank Financial Inc., TD Securities Inc., Desjardins Securities Inc. and Scotia Capital Inc. The Notes will be issued at par for aggregate gross proceeds of $525 million. The offering is expected to close on or about July 22, 2016, subject to customary closing conditions.
The Corporation intends to use the net proceeds of the offering to repay indebtedness outstanding under its credit facility and for general corporate purposes. As a result, the offering will allow the Corporation to decrease its exposure to interest rate fluctuations by fixing the rate on a portion of its current variable rate indebtedness.
The Notes will bear interest at a fixed annual rate of 2.337%, payable in equal semi-annual instalments over the five-year term. The Notes will be direct unsecured obligations of Dollarama and will rank pari passu with all other unsecured and unsubordinated indebtedness of Dollarama.
The Notes have been assigned a provisional rating of BBB, with a stable trend, by DBRS Limited, and are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. 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 the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction where it is unlawful to do so.
Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements.
Forward-looking statements are based on information currently available to us and on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis (MD&A) for the fiscal year ended January 31, 2016 and in the Corporation's other continuous disclosure filings (available on SEDAR at www.sedar.com). In addition, the closing of the proposed offering of Notes is subject to general market and other conditions and there can be no assurance that the proposed offering of Notes will be completed or that the terms of the proposed offering of Notes will not be modified.
These factors are not intended to represent a complete list of the factors that could affect us; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's financial performance and the proposed offering of Notes and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at July 19, 2016, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Dollarama is a Canadian dollar store operator offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our 1,038 locations across the country provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Our quality merchandise is sold in individual or multiple units at select, low fixed price points up to $3.00.
SOURCE Dollarama Inc.
For further information: Investors: Michael Ross, FCPA, FCA, Chief Financial Officer, (514) 737-1006 x1237, [email protected]; Media: Lyla Radmanovich, (514) 845-8763, [email protected]
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