By Rebecca Melvin
New York, May 24 - Premium Brands Holdings Corp. priced C$50 million of five-year convertible debentures on a bought-deal basis at par to yield 5.7% with an initial conversion premium of 53%, according to a news release.
There is an over-allotment option to purchase up to an additional C$7.5 million of debentures.
The issue was made via a syndicate of underwriters co-led by National Bank Financial Inc. and CIBC World Markets Inc.
The initial conversion price is C$28.30 per share.
Proceeds are expected to be used to reduce debt, for future acquisitions and for general corporate purposes.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange. The notes will be offered in each of the provinces of Canada by way of a short form prospectus and by private placement in the United States via Rule 144A.
Vancouver, B.C.-based Premium Brands is a producer, marketer and distributor of branded specialty food products.
| Issuer: | Premium Brands Holdings Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | National Bank Financial Inc., CIBC World Markets Inc.
|
| Coupon: | 5.7%
|
| Price: | Par
|
| Yield: | 5.7%
|
| Conversion premium: | 53%
|
| Conversion price: | C$28.30
|
| Conversion ratio: | 35.3357 shares
|
| Pricing date: | May 24
|
| Settlement date: | June 18
|
| Distribution: | Short form prospectus in Canada, Rule 144A in the United States
|
| Stock listing: | Toronto: PBH
|
| Stock reference: | C$18.50
|
| Market capitalization: | C$377.58 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
