Premium Brands Holdings Corporation

Premium Brands Holdings Corporation

November 27, 2009 08:45 ET

Premium Brands Holdings Corporation Announces Exercise in Full of Over-Allotment Option in Connection With Public Offering of Convertible Unsecured Subordinated Debentures

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2009) -


Premium Brands Holdings Corporation ("Premium Brands" or the "Company") (TSX:PBH), a leading producer, marketer and distributor of branded specialty food products, is pleased to announce that the underwriters of its offering of 7% convertible unsecured subordinated debentures (the "Debentures") exercised in full their over-allotment option, resulting in the issuance of an additional $5,250,000 aggregate principal amount of Debentures. Together with the closing that occurred on November 9, 2009, Premium Brands has issued $40,250,000 aggregate principal amount of Debentures.

The Debentures bear interest from the date of issue at 7% per annum, payable semi-annually in arrears on December 31 and June 30 each year commencing June 30, 2010 and have a maturity date of December 31, 2014 (the "Maturity Date"). Furthermore, they are convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by the Company for redemption of the Debentures into common shares at a conversion price of $14.50 per common share, being a conversion rate of 68.9655 common shares for each $1,000 principal amount of Debentures, subject to adjustment as provided in the indenture governing the Debentures.

The Company intends to use the net proceeds from the exercise of the over-allotment option to reduce existing indebtedness, all of which will then be available to be drawn as required for business acquisitions, which form a core part of the Company's growth strategy, and capital projects.

The underwriting syndicate for the offering was co-led by TD Securities Inc. and National Bank Financial Inc. and included Scotia Capital Inc., BMO Capital Markets, CIBC and Clarus Securities Inc.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

About Premium Brands

Premium Brands owns a broad range of leading branded specialty food businesses with manufacturing and distribution facilities located in British Columbia, Alberta, Saskatchewan, Manitoba and Washington. In addition, the Company owns proprietary food distribution and wholesale networks through which it sells both its own products and those of third parties to approximately 25,000 customers. The Company's family of brands include Grimm's, Harvest, McSweeney's, Bread Garden, Hygaard, Hempler's, Quality Fresh Foods, Gloria's Fresh, Harlan's, Centennial Foodservice and B&C Foods.

Forward-Looking Statements

This press release includes forward looking statements with respect to Premium Brands, including its business operations strategy and financial performance and condition. These statements generally can be identified by the use of forward looking words such as "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations. Although management believes that the expectations reflected in such forward looking statements are reasonable and represent Premium Brands' internal expectations and belief as of November 27th, 2009, such statements involve unknown risks and uncertainties beyond Premium Brands control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.

Important factors that could cause actual results to differ materially from Premium Brands' expectations are discussed in the Fund's Annual Information Form, which is filed electronically through SEDAR and is available online at It should be noted that this list of important factors affecting forward looking information may not be exhaustive.

Unless otherwise indicated, the forward looking information in this press release is made as of November 27th, 2009 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this document.

Contact Information

  • Premium Brands Holdings Corporation
    George Paleologou
    President and CEO
    (604) 656-3100
    Premium Brands Holdings Corporation
    Will Kalutycz
    (604) 656-3100