Doman Building Materials Group Ltd. Announces Offering and Pricing of Reopening of $100 Million Senior Notes Due 2029

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Dec. 03, 2024 (GLOBE NEWSWIRE) -- 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 and CIBC Capital Markets as joint active bookrunning managers, and National Bank Financial Markets, RBC Capital Markets and TD Securities as joint bookrunners, to sell an additional $100 million aggregate principal amount of its 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. The notes will be issued at a price of 101.5% of their face value (plus accrued interest from September 17, 2024), with yield to call of 6.889% and a yield to maturity of 7.119%. The notes will have identical terms and be fungible (following the expiry of the applicable statutory hold period) with and be part of a single series with the $265 million aggregate principal amount of 7.50% senior unsecured notes due 2029 issued by the Company on September 17, 2024.

The net proceeds from the issuance will be approximately $98.25 million. Doman intends to use the net proceeds of the offering to reduce amounts outstanding under its syndicated credit facility. 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.

The offering of 2029 Notes is expected to close on or about December 10, 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.