DOLLARAMA CONVERTS TO SUSTAINABILITY-RELATED CREDIT FACILITIES AND EXPANDS ITS COMMERCIAL PAPER PROGRAM IN THE UNITED STATES
MONTREAL, July 7, 2022 /PRNewswire/ – Dollarama Inc. (TSX: DOL) (“Dollarama” or the “Company”) announced today that it has amended its existing syndicated credit facilities to convert them into a sustainability-linked loan (” SLL”) with an available credit of 1,050 million Canadian dollars.
“We are proud to be among the first Canadian retailers to integrate ESG objectives into our credit agreement. This marks another important step in our ESG journey, as we pursue our growth strategy and seek to create sustainable value for our stakeholders,” said Neil RossyPresident and CEO.
“The conversion to sustainability-linked credit facilities is a concrete example of Dollarama’s ongoing efforts to meaningfully integrate our ESG strategy and commitments into day-to-day decision-making, including the active management of our capital structure.” , said JP Towner, Chief Financial Officer.
The SLL is linked to two specific sustainability performance (“SPT”) objectives linked to the Company’s overall environmental, social and governance (“ESG”) strategy and which are linked to incentive pricing conditions, namely: 1) Climate change and energy management: Reduction in the intensity of Scope 1 and Scope 2 greenhouse gas emissions; and 2) Diversity, Equity and Inclusion: increasing the representation of women in leadership positions.
RBC Capital Markets (“RBC”) and CIBC acted as co-structurers of sustainability.
At the same time, Dollarama extended the term of each syndicated credit facility and increased the credit available under all facilities to 1,050 million Canadian dollarsof 800 million Canadian dollars. The term of each facility was extended by one year, with Tranche A maturing on July 5, 2027Facility B and Facility C maturing on July 5, 2025and Facility D maturing on July 5, 2023. In certain circumstances and subject to the receipt of additional commitments from existing lenders or other eligible institutions, the Company may request increases in committed facilities up to an aggregate amount, together with all then existing commitments, of C$1.500 million. RBC and CIBC acted as joint bookrunners for the extension and increase of the credit facilities.
Increase in the commercial paper program in the United States
The Company also announced today the expansion of its commercial paper program by United States (the “US Commercial Paper Program”) from US$500 million to US$700 million.
Under the U.S. commercial paper program originally launched in February 2020, the Company may issue, from time to time, in a private placement, unsecured commercial paper with maturities not exceeding 397 days from of the date of issue (the “Notes”). The aggregate principal amount of Notes outstanding at any time under the US Commercial Paper Program, as amended, will not exceed US$700 million. The Company intends to continue to use the proceeds from the issuance of the Notes for general corporate purposes.
The Notes are direct unsecured obligations of the Company and rank pari passu with all of its other unsecured and unsubordinated indebtedness. The Notes are unconditionally guaranteed by Dollarama SEC and Dollarama GP Inc., each a wholly-owned subsidiary of the Corporation. The Company’s enhanced credit facilities will continue to serve as a backstop for the repayment of notes issued under the US commercial paper program.
The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and may not be offered or sold to any resident of Canada.
Notes offered under the United States Commercial Paper Program have not been and will not be registered under the Securities Act of 1933, as amended, or under any state securities law, and may not be offered or sold in United States the absence of registration or an applicable exemption from registration requirements. This press release will not constitute an offer to sell or the solicitation of an offer to buy, and there will be no offer to sell or solicitation of an offer to buy the Securities in United States or any jurisdiction where it is illegal to do so.
Certain statements in this press release regarding our current and future plans, expectations and intentions, results, levels of activity, performance, objectives or achievements, 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 deemed 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 report. annual management of the Company for the fiscal year ended January 30, 2022, available on SEDAR at www.sedar.com.
Readers should not place undue reliance on the forward-looking statements made herein. Further, unless otherwise indicated, the forward-looking statements contained in this press release are made as of July 7, 2022, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether 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.
Dollarama is a recognized Canadian value retailer offering a wide assortment of consumables, general merchandise and seasonal items in-store and online. Our 1,431 locations across Canada provide customers with attractive value in convenient locations, including metropolitan areas, mid-size cities and small towns. Select products are also available, by full case only, in our online store at www.dollarama.com. Our quality merchandise is sold at certain fixed prices up to $5.00.
Dollarama also owns a 50.1% stake in Dollarcity, a growing Latin American retailer. Dollarcity offers a wide assortment of consumables, general merchandise and seasonal items at certain fixed prices up to $4.00 (or the equivalent in local currency) in 358 conveniently located stores El Salvador, Guatemala, Colombia and Peru.
SOURCE Dollarama Inc.