Doman Building Materials Expands Finances with Latest Offering

Doman Building Materials Group Ltd. Achieves Major Financial Milestone

Doman Building Materials Group Ltd. (TSX: DBM) has successfully concluded its private placement offering, securing an impressive $170 million in senior unsecured notes. This strategic initiative aims to bolster its financial standing while ensuring continued growth.

Details of the Note Offering

The newly issued notes bear an interest rate of 7.50% and are set to mature on September 17, 2029. The placement was managed by reputable financial institutions including Stifel, CIBC Capital Markets, and TD Securities, showcasing Doman's robust market position. The senior unsecured notes will be fungible with existing notes, emphasizing their comprehensive financial strategy.

Purpose Behind the Fundraising

With an estimated net yield of $167 million from this offering, Doman plans to redeem its outstanding 5.25% senior unsecured notes due May 15, 2026. This move is intended to streamline its debt obligations and enhance overall liquidity, reflecting the company’s commitment to maintaining a strong balance sheet.

Investor Confidence and Market Positioning

Investors can expect dependable management of funds, as the company has reassured that the proceeds from the offering will be carefully utilized. This will strengthen Doman’s capital structure and improve financial flexibility as they navigate their future projects.

About Doman Building Materials Group Ltd.

Founded in 1989, Doman operates as Canada's exclusive integrated distributor in the building materials sector, serving both the Canadian and U.S. markets. With multiple facilities strategically located across Canada and the U.S., Doman is well-positioned to meet diverse customer needs.

Doman’s Operations

The company’s extensive operations include distribution centers and treating plants, ensuring efficient service in major cities. For example, Doman Lumber, operation in Texas, offers a range of treated wood products and related materials. Their comprehensive supply chain enhances operational efficiency across both countries.

Commitment to Quality and Service

Doman Building Materials places a strong emphasis on high-quality products and superior service. Their established reputation is supported by a dedicated workforce at various production facilities, which helps maintain consistent standards and customer satisfaction.

Future Plans and Strategy

The successful note offering positions Doman for greater operational efficiencies and potential expansions in the future. By refining their financial obligations, they are poised to leverage new market opportunities while continuing committed service to their clients.

Investor Communications

For more detailed insights into Doman's operations and financial standing, stakeholders are encouraged to review the company's filings. Investor inquiries can be directed to Ali Mahdavi from the Investor Relations team.

Frequently Asked Questions

What is the purpose of the recent note offering by Doman?

The note offering aims to raise capital for the redemption of outstanding senior unsecured notes and to strengthen the company's financial position.

How will Doman utilize the proceeds from the offering?

The net proceeds are primarily intended to redeem existing debt, thereby optimizing the company’s capital structure.

Which financial institutions facilitated the note offering?

Stifel, CIBC Capital Markets, and TD Securities served as joint bookrunners for the successful placement of the notes.

Is Doman Building Materials publicly traded?

Yes, Doman Building Materials Group Ltd. trades on the Toronto Stock Exchange under the ticker symbol DBM.

Where can I find more information about Doman?

Additional information can be found on the Company’s official website or through their public filings on SEDAR+.

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