Premium Brands Holdings closes greenshoe

Executive Summary

• Premium Brands Holdings Corp. has closed the full exercise of overallotment options related to its previously completed $600 million equity and convertible debenture offerings.
• The closing of the overallotment increased the total gross proceeds of the offering to approximately $665 million.
• Proceeds are designated to partially finance the indirect acquisition of Stampede Culinary Partners Inc., with remaining funds used to reduce existing indebtedness and cover offering/acquisition expenses.

Key Details

• Overallotment Exercise: The company exercised the overallotment options in full, granted to the syndicate of underwriters (CIBC Capital Markets, BMO Capital Markets, National Bank Financial Inc., Raymond James Ltd., and Scotiabank).
• Subscription Receipts: Sold an additional 430,860 subscription receipts for additional gross proceeds of approximately $42 million.
• Convertible Debentures: Sold an additional $22.5 million aggregate principal amount of 5.50% convertible unsecured subordinated debentures.
• Total Gross Proceeds: The total gross proceeds of the offering increased to approximately $665 million.
• Use of Proceeds (Subscription Receipts): Net proceeds held in escrow pending the closing of the indirect acquisition of all issued and outstanding shares of Stampede Culinary Partners Inc. Upon release, funds will finance the acquisition and cover offering/acquisition expenses.
• Use of Proceeds (Debentures): Initially used to reduce existing indebtedness under the senior revolving credit facility, thereby increasing available draw capacity to finance the acquisition and related expenses.
• Acquisition Financing: The balance of the cash purchase price for the Stampede Culinary Partners acquisition will be satisfied by a draw on the revolving credit facility.

Notable Quotes

• None provided in the text.