Dorel Industries Inc. said it plans appointed one or more independent director and entered into a five-year senior unsecured financing.
Dorel’s board intends to appoint one or more independent directors immediately following the company’s Annual Meeting of Shareholders, to be held June 20, 2019. The two independent directors to be appointed are Sharon Ranson and Brad Johnson.
Ranson is a corporate director and entrepreneur with in-depth financial expertise in accounting, capital markets and investments. She has provided strategic oversight to numerous Boards and Advisory Committees, and has chaired various Board committees including audit, governance, risk, human resources and compensation. Among her recent mandates are Sprott Inc., Echelon Financial Holdings and the City of Toronto Investment Board.
Ranson is also president and founder of The Ranson Group Inc., a company offering coaching and leadership work with senior executives. She has extensive experience in the Financial Services industry as a top-ranked Financial Services Analyst and Managing Director with RBC Capital Markets, and a senior Portfolio
Brad Johnson is currently a visiting lecturer at Babson College, a private business school in Massachusetts and global leader in entrepreneurship education. Previously, he was vice president, Operations at online furniture retailer, Wayfair, where he developed, launched and managed CastleGate Fulfillment, providing order and inventory management for furniture and décor suppliers. During his tenure he also established Wayfair as a major sales partner at several major on-line retailers.
Brad has extensive experience and success in starting-up companies and managing businesses in the consumer products and technology industries, with seven years spent internationally. He holds an M.B.A. from University of Virginia Darden School of Business and is a Certified Public Accountant.
“We are delighted to have Sharon and Brad join Dorel as independent directors. Brad’s experience at Wayfair will be extremely beneficial to Dorel as we plan to aggressively grow Juvenile and Sports’ online presence. Wayfair has been an important customer of Dorel Home for many years, which has been a meaningful contributor to Home’s growth. Sharon’s track record in finance and the capital markets is impressive and will bring added insight to our Board. Their combined expertise covers a multitude of specialities and we look forward to benefiting from their knowledge,” stated Martin Schwartz, president and CEO.
The five-year senior unsecured financing was led by Sagard Credit Partners LP, pursuant to a new US$175 million term loan agreement. This credit facility is divided into two tranches: (i) a US$125 million tranche that will be fully drawn and used to redeem at par Dorel’s US$120 million 5.5 percent subordinated convertible debentures maturingon November 30, 2019; and (ii) a US$50 million tranche that will be available for general corporate purposes with the consent of the lenders. This new credit facility will mature five years from the date of the initial advance, bear interest at a rate of 7.5 percent per annum payable quarterly in cash, rank pari passu with all of Dorel’s other senior unsecured indebtedness and will be guaranteed by certain of Dorel’s subsidiaries.
Upon redemption of the subordinated convertible debentures, the term of the Company’s senior secured revolving credit facilities and term loan will be extended by its senior lenders to July 1, 2021.
“We appreciate the confidence our lenders have clearly demonstrated in Dorel. The conclusion of this new financing, together with our existing senior secured credit facilities, solidifies our balance sheet, providing a strong foundation to support Dorel and its strategy going forward,” stated Schwartz.