On October 16, 2009, Dollarama Inc., the leading dollar store operator in Canada, completed a $300-million initial public offering (with a concurrent US rule 144 A Placement) of 17,142,857 common shares at a price of $17.50 per share. The net proceeds of the offering will be used to repay certain indebtedness of Dollarama, namely, the 8.875 per cent Senior Subordinated Notes due 2012 issued by certain of its subsidiaries, the term loan A facility forming part of its credit facility and notes owing to certain of its shareholders.
Certain Dollarama shareholders also granted the underwriters an over-allotment option to purchase additional common shares at a price of $17.50 per share. The underwriters exercised this option and on October 21, 2009, purchased an additional 2,571,428 common shares for approximate aggregate gross proceeds of $45,000,000.
The offering was underwritten by a syndicate of underwriters led by RBC Dominion Securities Inc., CIBC World Markets Inc. and Credit Suisse Securities (Canada), Inc., and including Scotia Capital Inc., Barclays Capital Canada Inc., National Bank Financial Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Merrill Lynch Canada Inc. and Raymond James Ltd.
Dollarama was represented by Stikeman Elliott LLP in Canada and Ropes & Gray LLP in the US. The Stikeman Elliott team included John Leopold, Peter Castiel, Franziska Ruf, Sophie Lamonde, Vanessa Coiteux, Dana Borshy, Philippe Tommei, Kim Le and Vanessa Udy (corporate and securities); Caroline Boutin and Marie-Aude Gagnon-Rousseau (financing); Marie-Andrée Beaudry and Frank Mathieu (tax); Patrick Essiminy and Diana Theophilopoulos (employment) and Benoît Huart (intellectual property). The Ropes & Gray team included Carl Marcellino, George Kopcsay (corporate and securities); Byung Choi, Milap Patel (financing) and Christopher Leich and Rom Watson (tax).
Ogilvy Renault LLP acted as counsel for the underwriters, with a team that included Paul Raymond, Stephen Kelly, Amélie Métivier, Karine Fadous and Mathieu Deschamps (corporate and securities), Derek Chiasson (tax), and Andrew Bleau (US matters).
Davies Ward Phillips & Vineberg LLP acted as counsel for the Rossy and Assaly families, shareholders, with a team that included Janet Ferrier and Sébastien Roy (corporate and securities) and Samuel Minzberg, Alan Shragie and Michael Kandev (tax).