Premium Brands completes C$150 million convertible debentures

Torys acted as counsel to the syndicate of underwriters with a team that included Robbie Leibel, Brett Saulnier and Alisse Elliott.

On June 13, 2022, Premium Brands Holdings Corporation (“Premium Brands”) announced the closing of its C$150 million aggregate principal amount of 5.40% convertible unsecured subordinated debentures at a price of C$1,000 per debenture. The debentures were offered to the public through a syndicate of underwriters which was co-led by National Bank Financial Inc., Scotiabank, CIBC Capital Markets and BMO Capital Markets.

Premium Brands also granted the underwriters an over-allotment option to purchase up to an additional C$22.5 million aggregate principal amount of debentures, on the same terms, exercisable in whole or in part at any time for a period of up to 30 days following closing of the offering. If the over-allotment option is exercised in full, the total gross proceeds to be raised under the offering will be C$172.5 million.

Premium Brands intends to use the net proceeds from the offering to reduce existing indebtedness under its senior revolving credit facility, thereby increasing the amount available to be drawn, as required, to fund future potential strategic acquisitions and capital projects, which may arise, and for general corporate purposes.

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

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.