DOLLARAMA CONVERTS TO SUSTAINABILITY-LINKED CREDIT FACILITIES AND UPSIZES ITS U.S. COMMERCIAL PAPER PROGRAM

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Jul 07, 2022, 17:11 ET

MONTREAL, July 7, 2022 /PRNewswire/ - 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

SOURCE Dollarama Inc.