Doman Building closes $170-million note offering

Executive Summary

• Doman Building Materials Group Ltd. has closed a private placement of $170 million in aggregate principal amount of 7.50% senior unsecured notes due September 17, 2029.
• The company intends to use the net proceeds of approximately $167 million, combined with funds from its syndicated credit facility, to redeem all outstanding 5.25% senior unsecured notes due May 15, 2026.
• The newly issued notes are fungible with and part of a single series with the existing $365 million of 7.50% senior unsecured notes due 2029.

Key Details

• New Debt Issuance:
  • Principal Amount: $170 million aggregate.
  • Interest Rate: 7.50% per annum.
  • Maturity Date: September 17, 2029.
  • Security: Senior unsecured.
  • Issuance Price: $1,016.25 per $1,000 principal amount, plus accrued interest from September 17, 2025.
  • Structure: The notes are fungible with and part of a single series with the previously outstanding $365 million of 7.50% senior unsecured notes due 2029.
  • Placement: Private placement to accredited investors in Canada; sold to non-U.S. persons outside the U.S. under Regulation S.
• Underwriters:
  • Joint Active Bookrunners: Stifel, CIBC Capital Markets, and TD Securities.
  • Joint Bookrunners: National Bank Capital Markets, Raymond James, RBC Capital Markets, Wells Fargo Securities, Canaccord Genuity, and Desjardins Capital Markets.
• Redemption of Existing Debt:
  • Target Notes: 5.25% senior unsecured notes due May 15, 2026.
  • Outstanding Principal: $272,163,000 as of the date of the release.
  • Funding Source: Net proceeds of ~$167 million from the new offering plus additional funds drawn under the syndicated credit facility.
  • Redemption Date: Expected to be completed on December 17, 2025.
  • Status: Formal notice of redemption has been delivered to Computershare Advantage Trust of Canada, as trustee.

Notable Quotes

• No direct quotes from management were included in the provided text.