/NOT FOR RELEASE OVER US NEWSWIRE SERVICES OR DISSEMINATION
IN THE US/
MONTREAL, Sept. 22,
2023 /CNW/ - Dollarama Inc. (TSX: DOL) ("Dollarama"
or the "Corporation") announced today that it has priced an
offering (the "Offering") of $500
million aggregate principal amount of 5.533% senior
unsecured notes due September 26,
2028 (the "Notes").
Considering existing hedging contracts, Dollarama estimates the
effective blended interest rate of its outstanding senior unsecured
notes (including the Notes) immediately following the closing of
the Offering and the repayment of its outstanding 3.55% senior
unsecured notes due November 6, 2023
will remain substantially unchanged.
The Notes are being offered
through an agency
syndicate consisting of CIBC World Markets Inc., RBC
Dominion Securities Inc. and TD Securities
Inc., as joint bookrunners and co-lead private
placement agents, and including National Bank Financial
Inc., Desjardins Securities Inc., Scotia Capital Inc., Mizuho
Securities Canada Inc., J.P. Morgan Securities Canada Inc. and
Casgrain & Company Limited. The Offering is
expected to close on or about September 26,
2023, subject to customary closing conditions.
The Notes will be issued at par for aggregate gross proceeds of
$500 million and will bear interest
at a fixed rate of 5.533% per annum, payable semi-annually, until
maturity on the 26th day of March and September of each
year, commencing on March 26,
2024.
The Corporation intends to use the net proceeds of the Offering
to repay, together with cash on hand, the $500 million aggregate principal amount of the
Corporation's outstanding 3.55% senior unsecured notes due
November 6, 2023 which will be repaid
in full at maturity, 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 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 29, 2023 and for the
second quarter ended July 30, 2023
and in the Corporation's other continuous disclosure filings, which
are available on SEDAR+ at www.sedarplus.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 September 22, 2023, 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 1,525 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
458 conveniently located stores in El
Salvador, Guatemala,
Colombia and Peru.
www.dollarama.com
SOURCE Dollarama Inc.