Premier Foods to raise money to pay off debt
March 06, 2009
by FoodBusinessNews.net Staff
LONDON — Premier Foods P.L.C. said it plans to raise approximately £379 million ($537 million) through the issuance of more than 1.5 billion shares at 26 pence per share, a 9% discount to its closing price on March 4.
The maker of Hovis bread is trying to raise money to pay down some of the debt it incurred as part of the acquisitions of Campbell’s and Rank Hovis Macdougall in 2006 and 2007, respectively. Premier said it considered potential disposals to help raise the money, but ultimately decided that option was not feasible given current market conditions.