/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Feb. 6, 2024
/CNW/ - Dye & Durham Limited ("Dye & Durham" or the
"Company") (TSX: DND) announced today the closing of its
previously announced bought deal offering (the "Offering")
of common shares of the Company (the "Common Shares").
Pursuant to the Offering, the Company issued a total of
11,960,000 Common Shares at a price of $12.10 per Common Share for gross proceeds to the
Company of approximately $145
million, which includes the exercise, in full, by the
Underwriters (as defined below) of the over-allotment option
granted by the Company to purchase up to an additional 1,560,000
Common Shares at a price of $12.10
per Common Share.
The Offering was conducted through a syndicate of underwriters
led by Canaccord Genuity Corp. and including BMO Nesbitt Burns
Inc., CIBC World Markets Inc., National Bank Financial Inc., Scotia
Capital Inc., Cormark Securities Inc., and Raymond James Ltd.
(collectively, the "Underwriters"). Goodmans LLP acted as
legal counsel to the Company and Bennett Jones LLP acted as legal
counsel to the Underwriters.
The Company will use the net proceeds of approximately
$139.5 million from the Offering to
immediately repay the outstanding balance on its revolving credit
facility. The balance of the net proceeds may be used to (a) make a
partial repayment of its term credit facility; (b) retire a portion
of the outstanding convertible debentures due March 1, 2026; or (c) both, with any amount not
so applied being used for general working capital purposes, which
includes funding the Company's continued growth strategy.
"By using a portion of the proceeds from the Offering to
immediately reduce a portion of the Company's indebtedness, the
closing of the Offering marks significant progress towards our
previously stated goal of deleveraging the business, including our
goal of reducing its leverage ratio to less than four times total
net debt to adjusted EBITDA," said Matthew
Proud, Chief Executive Officer of Dye & Durham.
No securities regulatory authority has either approved or
disapproved the contents of this news release. This news release
does not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale or any acceptance of an
offer to buy these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
The securities have not been and will not be registered under
the United States Securities Act of 1933 (the "U.S. Securities
Act"), as amended, or any state securities laws, and may not be
offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or
benefit of, "U.S. persons" (as defined in Regulation S under the
U.S. Securities Act). Accordingly, the securities may not be
offered or sold within the United
States unless registered under the U.S. Securities Act and
applicable state securities laws or pursuant to exemptions from the
registrations requirements of the U.S. Securities Act and
applicable state securities laws.
About Dye & Durham
Dye & Durham Limited provides premier practice management
solutions empowering legal professionals every day, delivers vital
data insights to support critical corporate transactions and
enables the essential payments infrastructure trusted by government
and financial institutions. The company has operations in
Canada, the United Kingdom, Ireland, Australia and South
Africa.
Additional information can be found at www.dyedurham.com.
Forward-looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities laws, which reflects
Dye & Durham's current expectations regarding future events. In
some cases, but not necessarily in all cases, forward-looking
statements can be identified by the use of forward looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "is positioned",
"estimates", "intends", "assumes", "anticipates" or "does not
anticipate" or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might", "will" or "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
projections or other characterizations of future events or
circumstances contain forward-looking statements. Specifically,
forward-looking statements include, without limitation, statements
regarding the Company's anticipated use of proceeds of the
Offering. Forward-looking statements are not historical facts, nor
guarantees or assurances of future performance but instead
represent management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking information is based on a number of assumptions
and is subject to a number of risks and uncertainties, many of
which are beyond Dye & Durham's control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such
risks and uncertainties include, but are not limited to, risks
relating to the application of the net proceeds received by the
Company from the Offering and that the Company cannot specify with
certainty the particular uses of the majority of the net proceeds
it received from the Offering, the factors discussed under "Risk
Factors" in Dye & Durham's most recent annual information form,
and the factors discussed under "Risk Factors" in the final short
form prospectus of the Company dated January
31, 2024. Dye & Durham does not undertake any obligation
to update such forward-looking information, whether as a result of
new information, future events or otherwise, except as expressly
required by applicable law.
SOURCE Dye & Durham Limited