Premium Brands Holdings Corporation to Raise $300 Million of New Capital to Fund Future Acquisitions and for General Corporate Purposes

BOUGHT DEAL FINANCING OF $120 MILLION OF COMMON SHARES, $150 MILLION OF CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES AND A CONCURRENT $30 MILLION PRIVATE PLACEMENT FROM CPP INVESTMENTS

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VANCOUVER, British Columbia, June 25, 2020 (GLOBE NEWSWIRE) -- Premium Brands Holdings Corporation (“Premium Brands” or the “Company”) (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, is pleased to announce that it has entered into an agreement with National Bank Financial Inc, BMO Capital Markets, CIBC Capital Markets, Cormark Securities Inc. and Scotiabank acting as joint bookrunners, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Company will issue, from treasury on a "bought-deal" basis, 1,391,000 common shares (the “Shares”) at a price of $86.30 per share (the “Share Issue Price”), for gross proceeds of approximately $120 million (the “Share Offering”) and $150 million aggregate principal amount of convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Debenture Offering”) (collectively, the “Offerings”).

In addition, Premium Brands has entered into an agreement under which the Company will complete a private placement of common shares at the Share Issue Price with Canada Pension Plan Investment Board (“CPP Investments”), for aggregate gross proceeds to the Company of approximately $30 million (the “Private Placement”).

The Company intends to use the net proceeds of the Offerings and the Private Placement for general corporate purposes as well as to fund potential future acquisition opportunities.

The Debentures will bear interest from the date of issue at 4.20% per annum, payable semi‐annually in arrears on March 31 and September 30 each year commencing March 31, 2021, and each will have a maturity date of September 30, 2027 (the “Maturity Date”). The Debentures will be convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by the Company for redemption of the Debentures into common shares at a conversion price of $142.40 per common share, being a conversion rate of 7.0227 common shares for each $1,000 principal amount of Debentures.