Premium Brands Holdings Corp., which owns a broad range of food manufacturing and distribution businesses operating throughout the U.S. and Canada, has completed a private placement deal for common shares with the Canada Pension Plan Investment Board.
At $86.30 per share, the CPPIB’s investment in 400,200 common shares, comes to about $34.5 million. A four-month statutory hold period is in place for the common shares from the date of issue, subject to certain exempt trades permitted by applicable securities legislation.
The company plans to use the influx of cash from the private placement, and a simultaneous public offering, to reduce indebtedness under one of its revolving credit facilities to increase available capital should strategic acquisition opportunities present themselves, said a Premium Brands press release.