Connors Bros. Income Fund last week completed its previously announced issuance of 6,420,750 Units (including 305,750 Units issued pursuant to the exercise in full of an over-allotment option granted by the Fund) to a syndicate of investment dealers led by CIBC World Markets Inc. and including BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc. and First Associates Investments Inc.
The net proceeds to the Fund from this offering of approximately $110 million will be used to fund a portion of the costs incurred by its subsidiary, Bumble Bee Seafoods, LLC, to acquire Castleberry/Snow's Brands, Inc., a shelf-stable seafood and meat manufacturing and distribution business, and substantially all the assets comprising Sara Lee Corporation's Sweet Sue/Bryan brands shelf-stable meat business.
As a result of these transactions, management estimates that the Fund's indirect interest in Bumble Bee Seafoods will increase from approximately 84% to approximately 85.5%, while its indirect interest in Clover Leaf Seafoods will remain at approximately 84%. The Fund will also receive interest payments on a U.S.$50 million note issued by a subsidiary of Bumble Bee Seafoods. Certain other investors, including members of Management, will hold a retained interest in the Fund's subsidiaries that is indirectly exchangeable for an approximately 14% interest in the Fund.