Premium Brands Holdings Corporation Announces the Closing of the Over-Allotment Options Exercised in Connection with its Recently Completed $600 million Equity and Convertible Debenture Offerings

Executive Summary

• Premium Brands closed its over‑allotment options, issuing an additional 430,860 subscription receipts for ~ $42 million and $22.5 million of 5.50% convertible unsecured subordinated debentures.
• The full exercise raised total gross proceeds of the original offering to approximately $665 million.
• Net proceeds will be used to fund the pending acquisition of Stampede Culinary Partners, Inc., reduce existing revolving credit indebtedness, and cover transaction‑related expenses.

Key Details

• Over‑Allotment Subscription Receipts: 430,860 receipts; gross proceeds ≈ $42 million.
• Over‑Allotment Convertible Debentures: Aggregate principal amount $22.5 million at a fixed rate of 5.50%, unsecured and subordinated.
• Total Offering Proceeds (including over‑allotments): Approximately $665 million gross.
• Use of Equity Proceeds: Held in escrow pending closing of the acquisition of all issued and outstanding shares of Stampede Culinary Partners, Inc.; thereafter to finance the acquisition and cover offering expenses.
• Use of Debenture Proceeds: Initially applied to reduce indebtedness under the senior revolving credit facility, thereby increasing available borrowing capacity for the acquisition and related costs.
• Acquisition Funding Structure: Remaining cash purchase price for Stampede Culinary Partners will be satisfied by a draw on the revolving credit facility after proceeds are released from escrow.
• Underwriters Leading the Offering: CIBC Capital Markets, BMO Capital Markets, National Bank Financial Inc., Raymond James Ltd., and Scotiabank.

Notable Quotes

(No direct quotes were provided in the release.)