Premium Brands Income Fund
TSX : PBI.UN

Premium Brands Income Fund

October 11, 2006 09:00 ET

Premium Brands Income Fund Completes Previously Announced Bought Deal Financing

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Premium Brands Income Fund ("Premium Brands" or the "Trust") (TSX:PBI.UN) is pleased to announce that it has closed today its previously announced bought deal financing. The syndicate of underwriters led by Sprott Securities Inc. and including CIBC World Markets Inc., Scotia Capital Inc. and Raymond James Ltd. purchased a total of 2,444,280 trusts units ("Trust Units") at a price of $11.60 per Trust Unit for gross proceeds to Premium Brands of $ 28,353,648 (such amount included 289,080 Trust Units acquired by the syndicate upon exercise of the underwriters' over-allotment option).

The net proceeds from the offering will be initially used by the Fund to reduce the amount of indebtedness outstanding under its credit facilities, and then to take advantage of acquisition opportunities that may arise and for general corporate purposes.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Premium Brands Income Fund
    George Paleologou
    President
    (604) 656-3100
    or
    Premium Brands Income Fund
    Will Kalutycz
    Chief Financial Officer
    (604) 656-3100