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  "docSlug": "ecb6f6c63e11",
  "documentTitle": "Dollarama Inc. (DOL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-10-31 00:00:00",
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  "pageNumber": 9,
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  "notes": "The slide uses a combination of a bar chart for debt maturity, a pie chart for debt structure, and a line chart for interest rate trends to build a case for financial risk.",
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      "kind": "callout",
      "text": "Management's use of short-term debt has burdened the business with refinancing risk in an environment in which the CDOR rate has risen sharply and is expected to rise for the foreseeable future.",
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      "kind": "chart",
      "text": "DOL.CN Debt Maturity Schedule (by CY Quarter)",
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      "kind": "chart",
      "text": "...While The Three-Month CDOR Rate Rises Rapidly",
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      "text": "DOL.CN Credit Breakdown (C$1,875M Total)",
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      "text": "refinancing risk: C$1.4B",
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      "kind": "paragraph",
      "text": "Dollarama refinanced significant short-term debt just last evening, levering up the business in the process. Management refinanced its C$400M of 3.095% fixed-rate notes due this November with C$500M of 3.55% fixed-rate notes due November 2023.",
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      "kind": "source-note",
      "text": "Source: Dollarama",
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      "kind": "source-note",
      "text": "Source: Bloomberg",
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      "kind": "title",
      "text": "Short-Term Debt In A Rising Rate Environment Introduces Refinancing Risk",
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      "evidence": "The deck identifies several problems with Dollarama's business model, including refinancing risk, stagnant store traffic growth, and unsustainable margins.",
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