Dollarama announces private offering of $150 million floating rate senior unsecured notes
Not for release over US newswire services or dissemination in the US
MONTRÉAL, May 13, 2014 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it has priced an offering of $150 million aggregate principal amount of floating rate senior unsecured notes due May 16, 2017 (the "Notes").
The Notes are being offered through an agency syndicate consisting of RBC Dominion Securities Inc. and CIBC World Markets Inc., 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 offering is expected to close on or about May 16, 2014, subject to customary closing conditions.
The Notes will be issued at par for aggregate gross proceeds of $150 million and will bear interest at a rate equal to the 3‑month bankers' acceptance rate (CDOR) plus 54 basis points (or 0.54 %), to be set quarterly on the 16th day of May, August, November and February of each year. The interest rate for the initial quarterly period will be set on the expected closing date of May 16, 2014. Interest will be payable in cash quarterly, in arrears, over the three‑year term on the 16th day of May, August, November and February of each year, commencing August 16, 2014.
Dollarama intends to use the net proceeds of the offering to repay indebtedness outstanding under its revolving credit facility 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 news 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.
About Dollarama
Dollarama is Canada's leading dollar store operator with 874 locations across the country. Our stores provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Dollarama aims to provide customers with a consistent shopping experience, offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Products are currently sold in individual or multiple units at select fixed price points up to $3.00.
Forward-Looking Statements
Certain statements in this news 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 greater detail in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis (MD&A) for the Corporation's fiscal year ended February 2, 2014 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 news release are made as at May 13, 2014, 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 news release are expressly qualified by this cautionary statement.
SOURCE Dollarama Inc.
