Ms. Silvana Travaglini reports

STELLA-JONES ANNOUNCES PRIVATE OFFERING OF C$400 MILLION OF 7-YEAR SENIOR UNSECURED NOTES

Stella-Jones Inc. has priced an inaugural offering of Canadian-dollar-denominated senior unsecured notes.

Stella-Jones will issue $400-million aggregate principal amount of senior unsecured notes due Oct. 1, 2031, bearing interest at the rate of 4.312 per cent per annum, payable semi-annually until maturity. The company intends to use the net proceeds from the offering to repay existing indebtedness under its revolving credit facilities, and any balance will be used for general corporate purposes.

The notes are being offered in Canada through an agency syndicate consisting of TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc., as joint lead agents and bookrunners, along with Merrill Lynch Canada Inc. and Scotia Capital Inc., as co-managers. The offering is expected to close on Oct. 1, 2024, subject to customary closing conditions.

The notes will be unsecured obligations of Stella-Jones, will rank equally and pari passu with the other present and future unsecured and unsubordinated obligations of Stella-Jones, and will be issued pursuant to a trust indenture, as supplemented by a first supplemental indenture, each to be dated the date of closing of the offering. Payment of the notes will be guaranteed on an unsecured basis by certain wholly owned subsidiaries of Stella-Jones. The notes have been assigned a provisional rating of BBB, with a stable trend, by DBRS Ltd.

The notes will be offered on a private placement basis in each of the provinces of Canada in reliance upon exemptions from the prospectus requirements of applicable securities laws.

About Stella-Jones Inc.

Stella-Jones is a leading North American manufacturer of pressure-treated wood products, focused on supporting infrastructure that is essential to the delivery of electrical distribution and transmission, and the operation and maintenance of railway transportation systems. It supplies the continent's major electrical utilities and telecommunication companies with wood utility poles and North America's Class 1, short line and commercial railway operators with railway ties and timbers. It also supports infrastructure with industrial products, namely wood for railway bridges and crossings, marine and foundation pilings, construction timbers, and coal tar-based products. Additionally, the company manufactures and distributes premium treated residential lumber and accessories to Canadian and American retailers for outdoor applications, with a significant portion of the business devoted to servicing Canadian customers through its national manufacturing and distribution network.

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