Premium Brands greenshoe lifts 5.75% convertibles to C$57.5 million

By Melissa Kory

Cleveland, Jan. 13 - Premium Brands Holdings Corp.'s underwriters exercised their C$7.5 million over-allotment option, lifting the closed offering of 5.75% convertible subordinated debentures due Dec. 31, 2015 to C$57.5 million.

On Dec. 8, Premium Brands priced C$50 million of the five-year convertibles on a bought-deal basis at par to yield 5.75% with an initial conversion premium of 60%.

The debentures were offered through a syndicate of underwriters co-led by National Bank Financial Inc. and Scotia Capital Inc.

Proceeds from the offering will be used for reducing debt, future acquisitions, capital expenditures and general corporate purposes.

The initial conversion price is C$22.40 per common share, or a conversion rate of 44.6429 common shares for each C$1,000 principal amount of debentures.

The debentures will be traded on the Toronto Stock Exchange under the symbol "PBH.DB.A."

Vancouver, B.C.-based Premium Brands is a producer, marketer and distributor of branded specialty food products.

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