MONTREAL,
July 7, 2022 /CNW/ -
Dollarama Inc. (TSX: DOL) ("Dollarama" or
the "Corporation") announced today that it has amended its
existing syndicated credit facilities to convert them to a
sustainability-linked loan ("SLL") with available credit of
C$1,050 million.
"We are proud to be among the first Canadian retailers to
integrate ESG targets to 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 Rossy, President and Chief
Executive Officer.
"The conversion to sustainability-linked credit facilities is a
concrete example of Dollarama's continued efforts to meaningfully
integrate our ESG strategy and commitments into everyday
decision-making, including in the active management of our capital
structure," said J.P. Towner, Chief Financial Officer.
The SLL is tied to two specific sustainability performance
targets ("SPTs") related to the Corporation's overall
Environmental, Social and Governance ("ESG") strategy and which are
linked to incentive pricing terms, namely: 1) Climate Change and
Energy Management: Reduction of Scope 1 and Scope
2 greenhouse gas emissions intensity; and 2) Diversity, Equity and
Inclusion: Increase of female gender representation in
management positions.
RBC Capital Markets ("RBC") and CIBC acted as Co-Sustainability
Structuring Agents.
Concurrently, Dollarama extended the term of each syndicated
credit facility and upsized the credit available under all
facilities to C$1,050 million, from
C$800 million. The term of each
facility was extended by one year, with Facility A now maturing on
July 5, 2027, Facility B and Facility
C maturing on July 5, 2025, and
Facility D maturing on July 5, 2023.
Under certain circumstances and subject to receipt of additional
commitments from existing lenders or other eligible institutions,
the Corporation may request increases to 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 on the extension and upsizing of the
credit facilities.
Upsize of U.S. Commercial Paper Program
The Corporation also announced today the upsize of its
commercial paper program in the United
States (the "US Commercial Paper Program") from
US$500 million to US$700 million.
Under the terms of the US Commercial Paper Program initially
launched in February 2020, the Corporation may issue, from
time to time, on a private placement basis, unsecured commercial
paper notes with maturities not in excess of 397 days from the date
of issue (the "Notes"). The aggregate principal amount of
Notes outstanding at any one time under the US Commercial
Paper Program, as amended, will not exceed
US$700 million. The Corporation intends to continue to
use the proceeds from the issuance of Notes for general corporate
purposes.
The Notes are direct unsecured obligations of the Corporation
and rank equally with all of its other unsecured and unsubordinated
indebtedness. The Notes are unconditionally guaranteed by
Dollarama L.P. and Dollarama GP Inc., each a wholly-owned
subsidiary of the Corporation. The Corporation's upsized credit
facilities will continue to serve as a liquidity backstop for the
repayment of the 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.
The Notes offered under the US Commercial Paper Program have not
been and will not be registered under the Securities Act of 1933,
as amended, or under any state securities laws, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. 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 the United States or any
jurisdiction where it is unlawful to do so.
Forward-Looking Statements
Certain statements in this press release about our current and
future plans, expectations and intentions, results, levels of
activity, performance, goals 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 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 for the fiscal year ended
January 30, 2022, available on SEDAR at
www.sedar.com.
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 July 7, 2022 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 1,431 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
358 conveniently located stores in El
Salvador, Guatemala,
Colombia and Peru.
www.dollarama.com
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content:https://www.prnewswire.com/news-releases/dollarama-converts-to-sustainability-linked-credit-facilities-and-upsizes-its-us-commercial-paper-program-301582698.html
SOURCE Dollarama Inc.