Premium Brands Holdings Corporation Announces Redemption of 4.65% Convertible Unsecured Subordinated Debentures Due April 30, 2021
VANCOUVER, BC, Aug. 10, 2020 /CNW/ - Premium Brands Holdings Corporation ("Premium Brands" or the "Corporation") (TSX:PBH), a leading producer, marketer and distributor of branded specialty food products, announced today that it will issue a notice (the "Notice") of redemption to holders of its currently outstanding 4.65% convertible unsecured subordinated debentures due April 30, 2021 (the "Debentures"). As set out in the Notice, the redemption date of the Debentures will be September 11, 2020 (the "Redemption Date"). The Debentures are redeemable for an amount (the "Redemption Price") equal to the principal amount of the Debentures plus accrued unpaid interest up to, but excluding, the Redemption Date. There are approximately $86.055 million aggregate principal amount of the Debentures outstanding.
Prior to the redemption of the Debentures, each holder will have the right to convert their Debentures into common shares of the Corporation (each being a "Common Share") at a conversion price of $85.90 per Common Share (the "Conversion Price") at any time on or prior to September 10, 2020. The required form of conversion notice will be available on SEDAR at www.sedar.com, and should be submitted to TSX Trust Company, as follows:
TSX Trust Company
301-100 Adelaide Street W.
Toronto, Ontario M5H 4H1
Attention: Corporate Actions
A holder electing to convert the principal amount of their Debentures will receive approximately 11.6414 Common Shares for each $1,000 principal amount of Debentures converted. No fractional shares will be issued on conversion but, in lieu thereof, the Corporation shall pay the cash equivalent thereof determined on the basis of the current market price of the Common Shares on the conversion date, as applicable (less any tax required to be deducted, if any), if the fractional share equivalent is greater than or equal to $10.00.
All holders of Debentures who fail to deliver a notice of conversion on or prior to September 10, 2020 shall have their Debentures redeemed for cash on the Redemption Date.
Beneficial holders of Debentures who wish to convert their Debentures into Common Shares should consult with their financial institutions as soon as possible and allow for sufficient time to complete the conversion process.
About Premium Brands
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada, the United States and Italy.
Forward-Looking Statements
This press release contains forward looking statements with respect to the Corporation, including its business operations, strategy and financial performance and condition. Although management believes that the expectations reflected in such forward looking statements are reasonable and represent the Corporation's internal expectations and belief as of the date hereof, such statements involve unknown risks and uncertainties beyond the Corporation's 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.
Forward looking 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.
Unless otherwise indicated, the forward looking information in this document is made as of August 10, 2020 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 press release.
SOURCE Premium Brands Holdings Corporation
Premium Brands Holdings Corporation, George Paleologou, President and CEO, (604) 656-3100; Premium Brands Holdings Corporation, Will Kalutycz, CFO, (604) 656-3100, www.premiumbrandsholdings.com
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