DBRS Finalizes Provisional Rating on CanWel Building Materials Group Ltd.

DBRS Limited (DBRS) finalized its provisional rating of B (high) with a Stable trend and a Recovery Rating of RR4 on the Senior Unsecured Notes (the Notes) of CanWel Building Materials Group Ltd. (CanWel or the Company). After reviewing the documentation associated with the recent offering, DBRS has confirmed that the terms of the issuance are consistent with those contemplated at the time the provisional rating was assigned on September 17, 2018.

The $60 million, 6.375% Notes mature on October 9, 2023, and have a 30-day underwriter’s option to increase the amount to $69 million. The net proceeds of the offering are expected to be used for the repayment of bank debt and for general corporate purposes.

For additional information on DBRS’s view of the credit quality of CanWel or this debt issuance, please refer to the DBRS report dated September 21, 2018.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Merchandising Industry, Rating Companies in the Forest Products Industry, including Appendix I – Timberland Operators and DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on dbrs.com under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com