Dollarama amended its existing syndicated credit facilities to convert them to a sustainability-linked loan with available credit of C$1.05 billion ($808 million). RBC Capital Markets and CIBC acted as co-sustainability structuring agents.
“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,” Neil Rossy, president and CEO of Dollarama, said.
“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,” J.P. Towner, CFO of Dollarama, said.
The sustainability-linked loan is tied to two specific sustainability performance targets related to the corporation’s overall environmental, social and governance strategy and which are linked to incentive pricing terms, namely: climate change and energy management: reduction of scope 1 and scope 2 greenhouse gas emissions intensity and diversity, equity and inclusion: increase of female gender representation in management positions.
Concurrently, Dollarama extended the term of each syndicated credit facility and upsized the credit available under all facilities to C$1,050 million ($808 million), from C$800 million ($615 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 ($1.15 billion). RBC and CIBC acted as joint bookrunners on the extension and upsizing of the credit facilities.
