Answer the questions below using the excerpts from Dollarama Inc. financial statements reproduced on the following pages. Dollarama is a Canadian retailer with over 1,000 stores across Canada. It sells a high volume of low-cost household goods - all items sell for less than $4.00. Read the description 'Credit Agreement' in Note 11, under the table on page 4. At Jan 30, 2022, how much has Dollarama borrowed under the TARCA? How much could they borrow? The note discusses covenants. Explain the term 'covenant' and give examples of the covenants that Dollarama has agreed to. 11 Debt Long-term debt outstanding consists of the following as at: \begin{tabular}{rr} January 30, & January 31, \\ 2022 & 2021 \\ $ & $ \\ \hline \end{tabular} Senior unsecured notes bearing interest at: Fixed annual rate of 2.443% payable in equal semi-annual instalments, maturing July 9, 2029 (the "2.443\% Fixed Rate Notes") Fixed annual rate of 1.505% payable in equal semi-annual instalments, maturing September 20, 2027 (the "1.505\% Fixed Rate Notes") Fixed annual rate of 1.871% payable in equal semi-annual instalments, maturing July 8,2026 (the " 1.871% Fixed Rate Notes") Fixed annual rate of 3.55% payable in equal semi-annual instalments, maturing November 6, 2023 (the "3.55\% Fixed Rate Notes") Fixed annual rate of 2.203% payable in equal semi-annual instalments, maturing November 10, 2022 (the "2.203\% Fixed Rate Notes") Fixed annual rate of 2.337% payable in equal semi-annual instalments, repaid on July 22, 2021 (the "2.337\% Fixed Rate Notes", and collectively with the 2.443% Fixed Rate Notes, the 1.505\% Fixed Rate Notes, the 1.871% Fixed Rate Notes, the 3.55% Fixed Rate Notes and the 2.203% Fixed Rate Notes, the "Fixed Rate Notes") Variable rate equal to 3-month bankers' acceptance rate (CDOR) plus 27 basis points payable quarterly, repaid on February 1, 2021 (the "Series 3 Floating Rate Notes" or "Floating Rate Notes") Less: Unamortized debt issue costs Accrued interest on Floating Rate Notes and Fixed Rate Notes (collectively, the "Senior Unsecured Notes") Fair value hedge - basis adjustment on interest rate swap \begin{tabular}{rr} 7,850(2,927) & 8,051 \\ \cline { 1 - 2 } 1,796,914 & - \\ \end{tabular} Current portion (includes unamortized debt issue costs, accrued interest on the Senior Unsecured Notes, and the Senior Unsecured Notes with a maturity date falling within the next 52-week period, when applicable) 1,539,240(257,674)1,044,079(832,821) On July 6, 2021, the Corporation and the lenders entered into a fourth amending agreement to the Third Amended and Restated Credit Agreement (the "TARCA") in order to, among other things, extend (i) the term of Facility A in the amount of $250,000 from September 27,2024 to July 6, 2026, (ii) the term of Facility B, in the amount of $200,000, from September 29, 2023 to July 5,2024 , (iii) the term of Facility C, in the amount of $50,000, from September 29, 2023 to July 5, 2024, and (iv) the term of Facility D, in the amount of $300,000, from September 20, 2021 to July 6,2022. The TARCA requires the Corporation to respect a minimum interest coverage ratio and a maximum leverage ratio, each tested quarterly on a consolidated basis. The Corporation has the option to borrow in Canadian or U.S. dollars. The Credit Facility remains guaranteed by Dollarama L.P. and Dollarama GP Inc. (collectively, with the Corporation, the "Credit Parties"). The TARCA contains restrictive covenants that, subject to certain exceptions, limit the ability of the Credit Parties to, among other things, incur, assume, or permit to exist senior ranking indebtedness or liens, engage in mergers, acquisitions, asset sales or sale leaseback transactions, alter the nature of the business and engage in certain transactions with affiliates. The TARCA also limits the ability of the Corporation to make loans, declare dividends and make payments on, or redeem or repurchase equity interests if there exists a default or an event of default thereunder. As at January 30, 2022 and January 31, 2021, no amount was outstanding under the TARCA. Answer the questions below using the excerpts from Dollarama Inc. financial statements reproduced on the following pages. Dollarama is a Canadian retailer with over 1,000 stores across Canada. It sells a high volume of low-cost household goods - all items sell for less than $4.00. Read the description 'Credit Agreement' in Note 11, under the table on page 4. At Jan 30, 2022, how much has Dollarama borrowed under the TARCA? How much could they borrow? The note discusses covenants. Explain the term 'covenant' and give examples of the covenants that Dollarama has agreed to. 11 Debt Long-term debt outstanding consists of the following as at: \begin{tabular}{rr} January 30, & January 31, \\ 2022 & 2021 \\ $ & $ \\ \hline \end{tabular} Senior unsecured notes bearing interest at: Fixed annual rate of 2.443% payable in equal semi-annual instalments, maturing July 9, 2029 (the "2.443\% Fixed Rate Notes") Fixed annual rate of 1.505% payable in equal semi-annual instalments, maturing September 20, 2027 (the "1.505\% Fixed Rate Notes") Fixed annual rate of 1.871% payable in equal semi-annual instalments, maturing July 8,2026 (the " 1.871% Fixed Rate Notes") Fixed annual rate of 3.55% payable in equal semi-annual instalments, maturing November 6, 2023 (the "3.55\% Fixed Rate Notes") Fixed annual rate of 2.203% payable in equal semi-annual instalments, maturing November 10, 2022 (the "2.203\% Fixed Rate Notes") Fixed annual rate of 2.337% payable in equal semi-annual instalments, repaid on July 22, 2021 (the "2.337\% Fixed Rate Notes", and collectively with the 2.443% Fixed Rate Notes, the 1.505\% Fixed Rate Notes, the 1.871% Fixed Rate Notes, the 3.55% Fixed Rate Notes and the 2.203% Fixed Rate Notes, the "Fixed Rate Notes") Variable rate equal to 3-month bankers' acceptance rate (CDOR) plus 27 basis points payable quarterly, repaid on February 1, 2021 (the "Series 3 Floating Rate Notes" or "Floating Rate Notes") Less: Unamortized debt issue costs Accrued interest on Floating Rate Notes and Fixed Rate Notes (collectively, the "Senior Unsecured Notes") Fair value hedge - basis adjustment on interest rate swap \begin{tabular}{rr} 7,850(2,927) & 8,051 \\ \cline { 1 - 2 } 1,796,914 & - \\ \end{tabular} Current portion (includes unamortized debt issue costs, accrued interest on the Senior Unsecured Notes, and the Senior Unsecured Notes with a maturity date falling within the next 52-week period, when applicable) 1,539,240(257,674)1,044,079(832,821) On July 6, 2021, the Corporation and the lenders entered into a fourth amending agreement to the Third Amended and Restated Credit Agreement (the "TARCA") in order to, among other things, extend (i) the term of Facility A in the amount of $250,000 from September 27,2024 to July 6, 2026, (ii) the term of Facility B, in the amount of $200,000, from September 29, 2023 to July 5,2024 , (iii) the term of Facility C, in the amount of $50,000, from September 29, 2023 to July 5, 2024, and (iv) the term of Facility D, in the amount of $300,000, from September 20, 2021 to July 6,2022. The TARCA requires the Corporation to respect a minimum interest coverage ratio and a maximum leverage ratio, each tested quarterly on a consolidated basis. The Corporation has the option to borrow in Canadian or U.S. dollars. The Credit Facility remains guaranteed by Dollarama L.P. and Dollarama GP Inc. (collectively, with the Corporation, the "Credit Parties"). The TARCA contains restrictive covenants that, subject to certain exceptions, limit the ability of the Credit Parties to, among other things, incur, assume, or permit to exist senior ranking indebtedness or liens, engage in mergers, acquisitions, asset sales or sale leaseback transactions, alter the nature of the business and engage in certain transactions with affiliates. The TARCA also limits the ability of the Corporation to make loans, declare dividends and make payments on, or redeem or repurchase equity interests if there exists a default or an event of default thereunder. As at January 30, 2022 and January 31, 2021, no amount was outstanding under the TARCA