Toronto, Ontario - Foresees Significant Capital Expenditure And Acquisition Opportunities
Maple Leaf Foods Inc. announced, that it is offering to sell up to $100 million principal amount of seven year 5.5 percent convertible unsecured subordinated debentures.
The debentures will be convertible into common shares of Maple Leaf Foods at any time prior to redemption or maturity at a conversion price of 125 percent of the 10 day weighted average price prior to the pricing date. Closing is expected to be in late November 1998. The net proceeds from the offering will be used to finance capital expenditures and acquisitions, repay senior bank indebtedness and for general corporate purposes.
Mr. Tom P. Muir, Executive Vice-President and Chief Financial Officer of Maple Leaf said: “At a time when many economists are forecasting a period of tight credit, we want to strengthen our financial position in order to aggressively pursue attractive growth opportunities through capital spending and acquisitions in each of our operating groups.”
Mr. Michael H. McCain, President & Chief Operating Officer of Maple Leaf and President of Maple Leaf Meats, added: “Following successful resolution of the labour disputes at Maple Leaf Meats, we are proceeding with a significant capital spending program that will ensure Maple Leaf Meats' facilities are world-class efficient. The new construction of our Brandon, Manitoba fresh pork facility is proceeding on schedule, the first stage of an expansion of the Burlington fresh pork facility was recently announced and the Winnipeg prepared meats facility will soon be undergoing a major expansion.”
McCain Capital Corporation, which is controlled by the G. Wallace F. McCain family, has agreed to underwrite up to $50 million of the offering. The balance will be marketed and sold through a private placement offering. The syndicate for the private placement offering is being led by TD Securities Inc. and includes RBC Dominion Securities Inc., Scotia Capital Markets and First Associates Investment Inc. The offering is subject to the approval of the Toronto Stock Exchange and the Montreal Exchange.
Maple Leaf Foods Inc. is Canada's largest food processor. The Company reports in the following three segments: Meat Products Group, which includes fresh pork and poultry, prepared meats and rendering; Bakery Products Group, which includes bakery operations in Canada and the U.S., and franchising operations; and Agribusiness Group, which includes animal feed and pet food operations, international food trading and seafood processing.
Meat Industry Insights News Service
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Phone: 631-757-4010
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