/Not for release over US newswire services
or dissemination in the US/
MONTREAL, Oct. 4, 2022
/CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the
"Corporation") announced today that it has priced an offering (the
"Offering") of $700 million aggregate
principal amount of fixed rate senior unsecured notes to be issued
in two series, consisting of $250
million aggregate principal amount of 5.084% senior
unsecured notes due October 27, 2025
(the "2025 Notes") and $450 million
aggregate principal amount of 5.165% senior unsecured notes due
April 26, 2030 (the "2030 Notes", and
together with the 2025 Notes, the "Notes"). Considering the impact
of hedging contracts previously entered into, Dollarama estimates
that the effective blended interest rate of the 2025 Notes and the
2030 Notes will correspond to approximately 4.83% per annum, on a
combined basis.
The Notes are being offered through an agency syndicate
consisting of RBC Capital Markets, CIBC Capital Markets and
National Bank Financial Markets, as joint bookrunners and co-lead
private placement agents, and including TD Securities Inc.,
Desjardins Securities Inc., Scotia Capital Inc., Mizuho Securities
Canada Inc., J.P. Morgan Securities Canada Inc. and Casgrain &
Company Limited. The offering of the 2025 Notes and the offering of
the 2030 Notes are not dependent or conditional upon each other and
are expected to close on or about October
26, 2022, subject to customary closing conditions.
The 2025 Notes will be issued at par for aggregate gross
proceeds of $250 million and will
bear interest at a fixed rate of 5.084% per annum, payable
semi-annually, until maturity on the 27th day of April
and October of each year, commencing on April 27, 2023. The 2030 Notes will also be
issued at par for aggregate gross proceeds of $450 million and will bear interest at a fixed
rate of 5.165% per annum, payable semi-annually until maturity on
the 26th day of April and October of each year,
commencing on April 26, 2023.
The Corporation intends to use the net proceeds of the Offering
to repay the $250 million aggregate
principal amount of the Corporation's outstanding 2.203% senior
unsecured notes due November 10, 2022
at maturity, to repay a portion of its outstanding U.S. commercial
paper notes, and for general corporate purposes.
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.
Forward-Looking
Statements
Certain statements in this press release about the timing and
completion of the Offering, the expected use of the net proceeds of
the Offering, the estimated blended interest rate of the Notes and
any other future events or developments constitute forward-looking
statements.
Forward-looking statements are based on information currently
available to management and on estimates and assumptions made by
management in light of its experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that are believed to be appropriate and
reasonable in the circumstances. However, there can be no assurance
that such estimates and assumptions will prove to be correct. Many
factors could cause 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 annual
management's discussion and analysis (MD&A) for the fiscal year
ended January 30, 2022 and for the
second quarter ended July 31, 2022
and in the Corporation's other continuous disclosure filings, which
are available on SEDAR at www.sedar.com.
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 Offering and other future events, and
may not be appropriate for other purposes. The closing of the
Offering is subject to general market and other conditions and
there can be no assurance that the Offering will be completed or
that the terms of the Offering will not be modified.
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 October 4, 2022, and the
Corporation has no intention and undertakes 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.
About Dollarama
Dollarama is a recognized Canadian value retailer offering a
broad assortment of consumable products, general merchandise and
seasonal items both in-store and online. Our 1,444 locations across
Canada provide customers with
compelling value in convenient locations, including metropolitan
areas, mid-sized cities and small towns. Select products are also
available, by the full case only, through our online store at
www.dollarama.com. Our quality merchandise is sold at select fixed
price points up to $5.00.
Dollarama also owns a 50.1% interest in Dollarcity, a growing
Latin American value retailer. Dollarcity offers a broad assortment
of consumable products, general merchandise and seasonal items at
select, fixed price points up to US$4.00 (or the equivalent in local currency) in
377 conveniently located stores in El
Salvador, Guatemala,
Colombia and Peru.
www.dollarama.com
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SOURCE Dollarama Inc.