Premium Brands Holdings Corporation Announces $150 Million Financing of Convertible Unsecured Subordinated Debentures

Core Viewpoint - Premium Brands Holdings Corporation has announced a bought-deal offering of $150 million in convertible unsecured subordinated debentures, with potential total gross proceeds of$172.5 million if the over-allotment option is exercised [1][2][3] Group 1: Offering Details - The company will issue $150,000,000 aggregate principal amount of convertible unsecured subordinated debentures at a price of$1,000 per debenture [1] - An over-allotment option allows underwriters to purchase an additional $22,500,000 in debentures, potentially raising total gross proceeds to$172,500,000 [1] - The closing of the offering is expected around March 19, 2025, subject to regulatory approvals [6] Group 2: Use of Proceeds - Net proceeds from the offering will be used to repay existing indebtedness under credit facilities, which will then be available for the redemption of the 4.65% debentures, future acquisitions, capital projects, and general corporate purposes [3] Group 3: Debenture Terms - The debentures will bear interest at 5.50% per annum, payable semi-annually, with a maturity date of March 31, 2030 [4] - Holders can convert the debentures into common shares at a conversion price of $126.15 per share, equating to 7.9271 shares for each$1,000 principal amount [5]