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Premium Brands Announces Cornerstone Investment from CPPIB
Premium Brands Announces Cornerstone Investment from CPPIB Canada NewsWire VANCO...
About this update from Premium Brands Holdings Corporation
[{"type":"text","content":"\n\n\n\nPremium Brands Announces Cornerstone Investment from CPPIB\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, May 21, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n VANCOUVER, May 21, 2019 /CNW/ - Premium Brands Holdings Corporation (\"Premium Brands\" or the \"Company\") (TSX:PBH) is pleased to announce that it has completed a private placement of 2,631,000 common shares from treasury to Canada Pension Plan Investment Board (\"CPPIB\") at a price of $76.02 per common share for aggregate gross proceeds of approximately $200 million (the \"CPPIB Private Placement\"). This is based on a 1.5% discount to the five-day volume-weighted average trading price of the Company's common shares as of the close of trading on May 17, 2019.\n\n \n \n\n \nPremium Brands intends to use the net proceeds of the CPPIB Private Placement to repay debt, finance organic and acquisition growth opportunities and for general corporate purposes. \nStrategic Rationale\nLong-Term Strategic Partner – CPPIB has a strong track record of supporting long-term value creation in its investments both within Canada and internationally.Strengthened Financial Position – Based on the Company's unutilized credit capacity as at March 30, 2019, together with the net proceeds of the CPPIB Private Placement and the Concurrent Financing (as defined herein), the Company expects to have approximately $416 million of liquidity to support its organic and acquisition growth opportunities.\"We are very pleased to be entering into this long-term partnership with CPPIB as we embark on the next stage of our growth strategy,\" said George Paleologou, President and CEO of Premium Brands. \"As we have expanded our footprint across North America our pipeline of acquisition and organic growth opportunities has scaled dramatically. By partnering with CPPIB not only do we better position ourselves to execute on these opportunities but we also secure a long term focused shareholder who shares our values and vision for the future. Fur...