Doman Building Materials Group Ltd. Announces Closing of Additional $100 Million Senior Unsecured Note Offering

Doman Building Materials Group Ltd. (“

Doman

” or the “

Company

”) (TSX: DBM) announced today that it has closed its previously announced private placement offering of $100 million aggregate principal amount of 7.50% senior unsecured notes (the “

Notes

”) due September 17, 2029 (the “

Note Offering

”). Stifel and CIBC Capital Markets acted as joint active bookrunning managers, and National Bank Financial Markets, RBC Capital Markets and TD Securities as joint bookrunners, on the Note Offering. The Notes have identical terms and will be fungible (following the expiry of the applicable statutory hold period) with, and are a part of a single series with, the $265 million aggregate principal amount of 7.50% senior unsecured notes due 2029 issued by the Company on September 17, 2024.

The Notes were issued at a price of $1,015 per $1,000 principal amount plus the amount of accrued interest on the principal amount from September 17, 2024 (the date on which Doman completed the original offering of its 7.50% senior unsecured notes) to the closing date of the Note Offering. The net proceeds from the Note Offering of approximately $99.75 million were used to reduce the amounts outstanding under Doman’s syndicated credit facility.

The Notes were offered for sale in each of the provinces of Canada to “accredited investors” on a private placement basis in accordance with Canadian securities laws. The Notes have not been and will not be qualified for distribution in Canada by a prospectus and were offered and sold in Canada only pursuant to an exemption from the prospectus requirements of Canadian securities laws. In addition, the Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and were sold to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in Canada, the United States or any other jurisdiction.

About Doman Building Materials Group Ltd.

Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM.

As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and coast-to-coast across the United States.

Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast-to-coast, and Doman Treated Wood Canada operates multiple treating plants near major cities. In the United States: headquartered in Dallas, Texas, Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Tucker Lumber operates three treating plants, specialty sawmilling operations and a captive trucking fleet serving the U.S. east coast; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands.  The Company’s Canadian operations also include ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through its Doman Timber operations.  

For additional information on Doman Building Materials Group Ltd., please refer to the Company’s filings on SEDAR+ and the Company’s website www.domanbm.com

For further information regarding Doman please contact:

Ali MahdaviInvestor Relations416-962-3300 [e-mail]

Caution Regarding Forward-Looking Statements

Certain statements in this news release may constitute “forward-looking” statements. When used in this press release, forward-looking statements often but not always, can be identified by the use of forward-looking words such as, including but not limited to, “may”, “will”, “would”, “should”, “expect”, “believe”, “plan”, “intend”, “anticipate”, “predict”, “remain”, “estimate”, “potential”, “forecast”, “budget”, “schedule”, “continue”, “could”, “might”, “project”, “targeting”, "future" and other similar terminology or the negative or inverse of such words or terminology. Forward-looking information in this news release includes, without limitation, statements with respect to the offering of the 2029 Notes and the use of proceeds therefrom and potential acquisition opportunities. These forward-looking statements reflect the current expectations of Doman’s management regarding future events and operating performance, and on information currently available to management, but involve other known and unknown or unpredictable risks, uncertainties and other factors which may cause the actual results, performance or achievements of Doman to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the “Risk Factors” section of Doman’s annual information form dated March 28, 2024 (the “AIF”) and those detailed in Doman’s most recent management’s discussion and analysis dated November 7, 2024. Although Doman believes that the expectations and the conditions reflected in such forward-looking statements are reasonable, Doman can give no assurance that each of these conditions will be satisfied to the satisfaction of Doman or that expectations will prove to be correct. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of additional risks and uncertainties affecting or that could affect Doman, which could cause actual results and developments to differ materially from those described in, expressed or implied by these forward-looking statements Accordingly, readers should not place undue reliance on any forward-looking statements or information. There are numerous risks associated with an investment in Doman’s common shares or senior unsecured notes, which are also further described in the “Risk Factors” section of Doman’s AIF, as well as its other public filings on SEDAR+. These forward-looking statements speak only as of the date of this press release. We caution that the foregoing factors that may affect future results are not exhaustive. When relying on our forward-looking statements to make decisions with respect to Doman, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Neither Doman nor any of its associates or directors, officers, partners, affiliates, or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in these communications will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Except as required by applicable securities laws and legal or regulatory obligations, Doman is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.