Dorel Industries US $275M Cross-Border Financing

On May 31, 2000, Montreal-based Dorel Industries Inc. (Dorel), which manufactures ready-to-assemble furniture, juvenile furniture and accessories and home furnishings, entered into a US$275 million credit agreement, as guarantor, together with six of its US subsidiaries, as borrowers. The agreement provides for a cross-border financing made available by a syndicate of US and Canadian lenders led by Royal Bank of Canada, as administrative agent, with RBC Dominion Securities Inc., as arranger, by way of revolving credit facilities, letters of credit and a swing line.

The facility is guaranteed by a number of subsidiaries of Dorel located in North America and overseas and was used to finance the acquisition of the shares of Safety 1st, Inc., a Massachusetts corporation engaged in a business similar to that of Dorel, and to refinance existing indebtedness. It will also be used for general corporate purposes.

The administrative agent, arranger and lenders were represented by Charles J. Boivin, Christian P. Sioufi and François Courteau of Ogilvy Renault (Montreal), as Canadian counsel, and by Scott M. Zemser, Alexander B. Zolfaghari and Jennifer Schwebel of Mayer Brown & Platt (New York), as US counsel, assisted by Royal Bank of Canada’s in-house counsel, Laurel A. Nichols. Dorel and its subsidiaries were represented by Kenneth S. Atlas and Claudette Bellemare of Heenan Blaikie (Montreal), as Canadian counsel, and by Bruce P. Weisenthal, Robert M. Cloninger and Matthew C. Alshouse of Schiff Hardin & Waite (Chicago), as US counsel. Dorel was also represented by Christopher J. Cummings of Shearman & Sterling with respect to matters specifically related to the acquisition of Safety 1st, Inc. Dorel also retained various local counsel in North America and overseas to represent the various guarantors involved in the transaction.