Business
Dollarama announces private offering of $525 million senior unsecured notes
Dollarama announces private offering of $525 million senior unsecured notes Dollar...
About this update from Dollarama Inc.
[{"type":"text","content":"\n\n\n\nDollarama announces private offering of $525 million senior unsecured notes\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nDollarama announces private offering of $525 million senior unsecured notes\nCanada NewsWire\nMONTREAL, July 19, 2016\n\n\n\n/NOT FOR RELEASE OVER US NEWSWIRE SERVICESOR DISSEMINATION IN THE US/\n\n\n\nMONTREAL, 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. \n\nThe 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. \n\nThe 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.\n\nThe 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. \n\nThe Notes have not been and will not be qualified for sale to the public under ap...