New York, March 26 – Premium Brands Holdings Corp. increased its issue of five-year convertible debentures to C$60 million from the previously announced C$50 million, according to a news release.
The company also increased the greenshoe to C$9 million from C$7.5 million.
Premium Brands said it was able to upsize the deal because of strong demand.
As previously reported, the company priced the convertibles on a bought-deal basis at par to yield 5% with an initial conversion premium of 60% after the close on Wednesday.
The initial conversion price is C$44.65 per share.
The issue was made via a syndicate of underwriters co-led by BMO Capital Markets and CIBC World Markets Inc.
Proceeds will be used to pay down a credit facility, which can then be drawn again to redeem about $43.53 million outstanding of its 5.75% convertibles due Dec. 31, 2015. Remaining proceeds will be used for future acquisitions, capital projects and 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 unsecured subordinated debentures
|
| Amount: | C$60 million, increased from C$50 million
|
| Greenshoe: | C$9 million, increased from C$7.5 million
|
| Maturity: | April 30, 2020
|
| Underwriters: | BMO Capital Markets and CIBC World Markets Inc. (joint leads), Cormark Securities Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp. and PI Financial Corp.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 60%
|
| Conversion price: | C$44.65
|
| Conversion ratio: | 22.39644
|
| Pricing date: | March 25
|
| Settlement date: | April 17
|
| Distribution: | Short form prospectus in Canada, Rule 144A in the United States
|
| Stock listing: | Toronto: PBH
|
| Stock reference: | C$27.90, as of close March 25
|
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