Cara completes C$230 million private placement of subscription receipts

On April 15, 2016, Cara Operations Limited (Cara) announced that it completed its previously announced offering of 7,863,280 subscription receipts, on a private placement basis by a syndicate of agents led by Scotia Capital Inc. (acting as sole bookrunner) and including BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc., at a price of $29.25 per Subscription Receipt which raised gross proceeds of approximately C$230 million.

As part of the offering, Fairfax Financial Holdings Limited and its affiliates have purchased 3,487,180 subscription receipts, accounting for approximately C$102 million of the total C$230 million gross proceeds.

The net proceeds from the offering will be used to finance, in part, the purchase price under Cara's previously announced agreement to acquire 100% of Groupe St-Hubert Inc., Québec's leading full-service restaurant operator as well as a fully-integrated food manufacturer, for C$537 million. The net proceeds will be held in escrow pending the closing of the acquisition.

Cara is Canada's oldest and largest full-service restaurant company, franchising and/or operating some of the most recognized brands in the country including Swiss Chalet, Harvey's, Milestones, Montana's, Kelsey's, East Side Mario's, Casey's, New York Fries, Prime Pubs, Bier Markt and Landing restaurants.

Further information can be found on Canada Newswire's website.