By Cristal Cody
Eureka Springs, Ark., July 19 – Dollarama Inc. priced C$525 million of 2.337% five-year senior notes at par in a Canadian private placement offering on Tuesday, according to a company news release and spokesman.
The notes (DBRS: BBB) priced with a spread of 167 basis points over the Government of Canada benchmark.
RBC Capital Markets (Canada) Ltd. and CIBC World Markets Inc. were the bookrunners.
Dollarama plans to use the proceeds to repay debt outstanding under its credit facility and for general corporate purposes. The company said the offering will allow it to decrease its exposure to interest rate fluctuations by fixing the rate on a portion of its current variable-rate debt.
The dollar store operator is based in Montreal.
| Issuer: | Dollarama Inc.
|
| Amount: | C$525 million
|
| Maturity: | July 22, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | RBC Capital Markets (Canada) Ltd., CIBC World Markets Inc.
|
| Co-managers: | National Bank Financial Inc., TD Securities Inc., Desjardins Securities Inc., Scotia Capital Inc.
|
| Coupon: | 2.337%
|
| Price: | Par
|
| Yield: | 2.337%
|
| Spread: | 167 bps over Government of Canada benchmark
|
| Pricing date: | July 19
|
| Settlement date: | July 22
|
| Rating: | DBRS: BBB
|
| Distribution: | Canada private placement
|
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