MONTREAL, May 13, 2013 /CNW Telbec/ - MEGA Brands Inc. (TSX: MB) (the "Corporation") announced today the expiry of its cashless exercise offer in respect
of its common share purchase warrants (the "Warrants") which commenced on April 5, 2013 with the mailing of an offer letter and
a cashless exercise election form to warrantholders (the "Offer"). The Offer expired at 5:00 p.m. (EST) on May 10, 2013. A total of
46,832,264 Warrants were exercised on a cashless basis pursuant to the
Offer, representing 35.6% of the number of Warrants outstanding as of
April 5, 2013.
In addition, prior to the launch of the Offer, Fairfax Financial
Holdings Ltd. ("Fairfax") and Victor J. Bertrand, Sr. ("Mr. Bertrand") exercised the full amount of the Warrants they held and Trimark
Investments ("Trimark", together with Fairfax and Mr. Bertrand, the "Supporting Holders") exercised 33,978,000 of the Warrants it held. As of May 13, 2013, a
total number of 108,310,000 Warrants were exercised on a cash basis
since the Offer was first announced, including the number of Warrants
exercised by the Supporting Holders. When the number of Warrants
exercised on a cash basis is added to the total number of Warrants
submitted for Cashless Exercise pursuant to the Offer, the aggregate
number of Warrants exercised is 155,142,264, which represents 64.7% of
the total number of 239,844,000 Warrants outstanding as of March 26,
2013, the date the Offer was first announced. Consequently, there are
84,701,736 Warrants outstanding as of May 13, 2013.
The Corporation used proceeds from the above-mentioned exercise of
Warrants together with a scheduled repayment to reduce the outstanding
principal amount of its debentures by CA$60.9 million. As a result,
going forward, the Corporation's pre-tax cash interest expense will be
reduced by approximately CA$6.2 million annually, representing CA$0.22 per diluted common share on a pre-tax basis. The principal amount of
debentures outstanding has been reduced to CA$53.7 million as at April
15, 2013, compared to CA$141.7 million as at March 30, 2010 when they
About MEGA Brands Inc.
MEGA Brands Inc. is a trusted family of leading global brands in
construction toys, games & puzzles, arts & crafts and stationery. They
offer engaging creative experiences for children and families through
innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information.
The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board
Dudes are trademarks of MEGA Brands Inc. or its affiliates.
All statements in this press release that do not directly and
exclusively relate to historical facts constitute "forward-looking
information" within the meaning of applicable Canadian securities laws
These statements represent the Corporation's intentions, plans,
expectations and beliefs. Readers are cautioned not to place undue
reliance on these forward-looking statements. Forward-looking
information and statements are based on a number of assumptions and
involve risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or implied by them,
including, but not limited to risks, assumptions and uncertainties
described in the Corporation's MD&A for the year ended December 31,
2012, which are available at www.sedar.com and on the Corporation's Web site. The Corporation disclaims any
intention or obligation to publicly update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by applicable law.
SOURCE: MEGA BRANDS INC.
For further information:
Vice-President and Chief Financial Officer
Tel: (514) 333-5555 ext. 2283
Vice-President, General Counsel and Corporate Secretary
Tel: (514) 333-5555 ext. 2897