/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, Sept. 12,
2024 /CNW/ - Doman Building Materials Group Ltd.
("Doman" or "the Company") (TSX: DBM) announced today
that it has entered into an underwriting agreement with a syndicate
of underwriters consisting of Stifel as lead bookrunner, RBC
Capital Markets and CIBC Capital Markets as joint bookrunners, and
TD Securities and National Bank Financial Markets as co-managers,
to sell $265 million aggregate
principal amount of 7.50% Senior Unsecured Notes due 2029 (the
"2029 Notes"). The 2029 Notes will be senior unsecured
obligations of Doman maturing September 17,
2029, and ranking equally with all other present and future
senior unsecured indebtedness of the Company.
Doman intends to use the net proceeds of the offering to reduce
amounts outstanding under its syndicated credit facility and
repurchase for cancellation a portion of its 2026 Senior Notes,
which, at June 30th, 2024,
had balances of $339.4 million and
$324.5 million, respectively. The
Company will retain the ability to draw on its syndicated credit
facility in the future to fund potential acquisitions, and for
working capital and general corporate purposes.
Amar Doman, Chairman & CEO of
Doman, commented "The Company is pleased with investor reception to
our senior notes offering which allows us to further solidify our
balance sheet on attractive terms and provide ample liquidity to
take advantage of future acquisition opportunities that fit our
strategic, financial and operating parameters. Diversifying
our funding sources is a key tenet of our strategic growth plans as
we continue our evolution and growth journey and we are very
pleased to see the breadth of the investor base. Finally, I would
like to commend everyone at Doman, including our business partners,
for the strong operating performance and financial execution during
a very unique period in our operating history. Doman is very
well positioned to continue to deliver for our shareholders thanks
to our collective efforts and success".
The offering of 2029 Notes is expected to close on or about
September 17, 2024, subject to
customary closing conditions. The 2029 Notes were offered on a
private placement basis in each of the provinces of Canada pursuant to certain prospectus
exemptions. The 2029 Notes have not been registered under the U.S.
Securities Act of 1933, as amended (the "U.S. Securities
Act") and are being offered and sold into the U.S. only to
qualified institutional buyers in reliance on Rule 144A of the U.S.
Securities Act.
This press release is not an offer or a solicitation of an offer
of securities for sale in the United
States. The 2029 Notes have not been and will not be
registered under the U.S. Securities Act and may not be offered or
sold in the United States absent
registration or an applicable exemption from registration.
About Doman
Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the
Toronto Stock Exchange under the symbol DBM.
As Canada's only fully
integrated national distributor in the building materials and
related products sector, Doman operates several distinct divisions
with multiple treating plants, planing and specialty facilities and
distribution centres coast-to-coast in all major cities across
Canada and select locations across
the United States.
Strategically located across Canada, Doman Building Materials Canada
operates distribution centres coast-to-coast, and Doman Treated
Wood Canada operates multiple treating plants near major cities;
headquartered in Dallas, Texas,
Doman Lumber operates 21 treating plants, two specialty planing
mills and five specialty sawmills located in nine states,
distributing, producing and treating lumber, fencing and building
material servicing the central U.S.; Doman Building Materials
USA and Doman Treated Wood
USA serve the U.S. west coast with
multiple locations in California
and Oregon; and in the state of
Hawaii the Honsador Building
Products Group services 15 locations across all the islands. The
Company's Canadian operations also include ownership and management
of private timberlands and forest licenses, and agricultural
post-peeling and pressure treating through its Doman Timber operations.
For additional information on Doman Building Materials Group
Ltd., please refer to the Company's filings on SEDAR+ and the
Company's website www.domanbm.com
Caution Regarding Forward-Looking
Statements
Certain statements in this news release may constitute
"forward-looking" statements. When used in this press release,
forward-looking statements often but not always, can be identified
by the use of forward-looking words such as, including but not
limited to, "may", "will", "would", "should", "expect", "believe",
"plan", "intend", "anticipate", "predict", "remain", "estimate",
"potential", "forecast", "budget", "schedule", "continue", "could",
"might", "project", "targeting", "future" and other similar
terminology or the negative or inverse of such words or
terminology. Forward-looking information in this news release
includes, without limitation, statements with respect to the
offering of the 2029 Notes and the use of proceeds therefrom and
potential acquisition opportunities. These forward-looking
statements reflect the current expectations of Doman's management
regarding future events and operating performance, and on
information currently available to management, but involve other
known and unknown or unpredictable risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Doman to differ materially from those anticipated
in such forward-looking statements for a variety of reasons,
including without limitation the risks and uncertainties detailed
under the "Risk Factors" section of Doman's annual information form
dated March 28, 2024 (the
"AIF") and those detailed in Doman's most recent
management's discussion and analysis dated August 9, 2024. Although Doman believes that the
expectations and the conditions reflected in such forward-looking
statements are reasonable, Doman can give no assurance that each of
these conditions will be satisfied to the satisfaction of Doman or
that expectations will prove to be correct. By their nature,
forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. There are a number of additional risks and
uncertainties affecting or that could affect Doman, which could
cause actual results and developments to differ materially from
those described in, expressed or implied by these forward-looking
statements Accordingly, readers should not place undue reliance on
any forward-looking statements or information. There are numerous
risks associated with an investment in Doman's common shares or
senior unsecured notes, which are also further described in the
"Risk Factors" section of Doman's AIF, as well as its other public
filings on SEDAR+. These forward-looking statements speak only as
of the date of this press release. We caution that the foregoing
factors that may affect future results are not exhaustive. When
relying on our forward-looking statements to make decisions with
respect to Doman, investors and others should carefully consider
the foregoing factors and other uncertainties and potential events.
Neither Doman nor any of its associates or directors, officers,
partners, affiliates, or advisers, provides any representation,
assurance or guarantee that the occurrence of the events expressed
or implied in any forward-looking statements in these
communications will actually occur. You are cautioned not to place
undue reliance on these forward looking statements. Except as
required by applicable securities laws and legal or regulatory
obligations, Doman is not under any obligation, and expressly
disclaims any intention or obligation, to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Doman Building Materials Group Ltd.