June 11, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Dollarama, Inc. (TSX: DOL) said that its Dollarama Group L.P. subsidiary has entered into an agreement providing for a new all-Canadian $600 million syndicated senior secured credit facility. Dollarama said that Group LP plans to use the proceeds of the new credit facility to repay its senior secured credit facility, to redeem and discharge the senior floating rate deferred interest notes issued by its affiliate, Dollarama Group Holdings L.P., to repay the debt-related hedging obligations, to pay related fees and expenses and the balance for working capital and other general corporate purposes.

The new credit facility will consist of a $75 million revolving credit facility, and a $525 million term loan A facility maturing in June 2014. At Dollarama's current leverage level, the new facility will accrue interest at BA + 275 bps.

It will be secured by a security interest encumbering substantially all of existing and future assets of Group LP, as well as its subsidiaries.

According to Dollaramam, at the end of the quarter ended May 2, the existing credit facility consisted of a $237.4 million term loan B facility maturing in November 2011; and an undrawn $75.0 million revolving credit facility. As of the same date, there was $215.5 million in aggregate principal amount and deferred interest outstanding on the deferred interest notes, as well as $60.1 million of debt-related hedging obligations.

Canada-based Dollarama is a dollar store operator in Canada with 611 locations across the country.

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