By Rebecca Melvin
New York, Sept. 12 - Premium Brands Holdings Corp. priced C$50 million of five-year convertible debentures on a bought-deal basis at par to yield 5.5%, according to a news release.
The initial conversion price is C$29.25 per share, which represents an initial conversion premium of 60%.
The issue was made via a syndicate of underwriters co-led by CIBC World Markets Inc., BMO Capital Markets, National Bank Financial Inc., Scotiabank and TD Securities Inc.
There is an over-allotment option to purchase up to an additional C$7.5 million of debentures.
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, 2019
|
| Bookrunners: | Syndicate co-led by CIBC World Markets Inc., BMO Capital Markets, National Bank Financial Inc., Scotiabank and TD Securities Inc.
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 60%
|
| Conversion price: | C$29.25
|
| Pricing date: | Sept. 12
|
| Settlement date: | Oct. 9
|
| Distribution: | Short form prospectus in Canada, Rule 144A in the United States
|
| Stock listing: | Toronto: PBH
|
| Stock reference: | C$18.31, as of close Sept. 12
|
| Market capitalization: | C$390.5 million
|
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