Toronto, Ontario - Maple Leaf Foods Inc. announced the final terms of its offering of convertible unsecured debentures.
The Company will sell between $50 million and $100 million principal amount of seven year convertible unsecured subordinated debentures. The interest rate will be 6.0 percent and 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 $15.00. The $15.00 conversion price represents a 22 percent premium to yesterday's closing price. Other terms of the debentures are as set out in the Confidential Offering Memorandum and Trust Indenture.
Closing will take place on December 8, 1998. McCain Capital Corporation, which is controlled by the G. Wallace F. McCain family and which currently owns about 34 percent of the outstanding shares of Maple Leaf Foods, will subscribe for $50 million of th e debentures. The balance is being marketed and sold through a private placement offering managed by a syndicate led by TD Securities Inc. and including RBC Dominion Securities Inc., Scotia Capital Markets and First Associates Investments Inc. The Toro nto Stock Exchange and the Montreal Exchange have conditionally approved the offering subject to delivery of final documents.
Mr. Tom P. Muir, Executive Vice-President and Chief Financial Officer of Maple Leaf Foods said: “The convertible debentures provide investors an attractive opportunity to participate in the future growth of Maple Leaf Foods as we aggressively pursue cap ital spending and acquisition opportunities in each of our operating groups”.
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 operat ions 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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