Cott received gross proceeds from the offering of approximately $50m, resulting in net proceeds of approximately $47.5m, after deducting underwriting commissions and estimated offering expenses.
The previously announced amendment to Cott’s asset-based lending (‘ABL’) facility is now fully effective.
“Successfully completing this equity offering is an important step in our strategy to reduce our debt and strengthen our balance sheet,” said Juan Figuereo, Cott’s chief financial officer. “This debt reduction will improve our access to lower cost capital and further improve our long-term financial strength and flexibility.”
“We’re encouraged by the strong investor interest we received in this offering,” added Jerry Fowden, Cott’s CEO.
Cott intends to use the net proceeds from the offering to either repurchase a certain portion of its 8.0% Senior Subordinated Notes due December 2011, or to repay indebtedness outstanding under its ABL facility.
TD Securities Inc led a syndicate of underwriters, including CIBC World Markets Inc and BMO Nesbitt Burns Inc, for the offering.
The common shares were offered pursuant to an effective registration statement filed with the Securities and Exchange Commission (the ‘Registration Statement’) and in Canada by way of a prospectus supplement dated 4 August 2009 under the short form base shelf prospectus dated 17 June 2009, filed with the securities regulatory authorities in each of the Provinces of Canada except Quebec, which incorporates the prospectus supplement that was filed in the US with the Securities and Exchange Commission as part of the Registration Statement.
Offers and sales of the common shares were made only by the related prospectus and prospectus supplement, which describes the offering.
Source: Cott Corporation
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