News Release

Dollarama Announces Private Offering of $750 Million Senior Unsecured Notes

/NOT FOR RELEASE OVER US NEWSWIRE SERVICES OR DISSEMINATION IN THE US/

MONTREAL, June 23, 2021 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it has priced an offering of $750 million aggregate principal amount of fixed rate senior unsecured notes to be issued in two series, consisting of $375 million aggregate principal amount of 1.871% senior unsecured notes due July 8, 2026 (the "2026 Notes") and $375 million aggregate principal amount of 2.443% senior unsecured notes due July 9, 2029 (the "2029 Notes", and together with the 2026 Notes, the "Notes").

The Notes are being offered through an agency syndicate consisting of CIBC Capital Markets, RBC Capital Markets, TD Securities Inc. and Desjardins Securities Inc., as joint bookrunners and co-lead private placement agents, and including National Bank Financial Markets, Scotia Capital Inc., J.P. Morgan Securities Canada Inc., Mizuho Securities Canada Inc. and Casgrain & Company Limited. The offering of the 2026 Notes and the offering of the 2029 Notes are not dependent or conditional upon each other and are expected to close on or about July 8, 2021, subject to customary closing conditions.

The 2026 Notes will be issued at par for aggregate gross proceeds of $375 million and will bear interest at a fixed rate of 1.871% per annum, payable semi-annually until maturity on the 8th day of January and July of each year, commencing on January 8, 2022. The 2029 Notes will also be issued at par for aggregate gross proceeds of $375 million and will bear interest at a fixed rate of 2.443% per annum, payable semi-annually until maturity on the 9th day of January and July of each year, commencing on January 9, 2022.

The Corporation intends to use the net proceeds of the offering to repay the $525 million aggregate principal amount of its outstanding 2.337% senior unsecured notes due July 22, 2021, 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 proposed offering of Notes, the expected use of the net proceeds of the offering and 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 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 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, 2021 and for the quarter ended May 2, 2021 and in the Corporation's other continuous disclosure filings (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 proposed offering of Notes and other future events, and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. 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. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at June 23, 2021, 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.

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 1,368 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 $4.00.

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$3.00 (or the equivalent in local currency) in El Salvador and Guatemala and up to the equivalent of US$4.00 in local currency in Colombia through its 279 conveniently located stores.

SOURCE Dollarama Inc.

Press Contact
Lyla Radmanovich
514 845-8763
media@rppelican.ca