Cott Corporation (USA) (NYSE:COT) has revealed that DS Services of America, a subsidiary it wholly owns, has notified Wilmington Trust that it will redeem approximately $100 million of outstanding notes that it currently holds. The redemption date will be on May 5, 2017.
The price at which the notes will be redeemed will be equivalent to 100% of the value of the principal amount. There will also be a premium applied as well as unpaid or accrued interest. In this regard, instructions have been sent to the Trustee by the issuer informing all registered Notes holders about the intended redemption.
Private placement of senior notes
This comes less than a month since Cott Corporation closed a $750 million private placement of 5.5% senior notes which are due in 20125. The net proceeds from the placement came to $738.3 million. Some of the proceeds will be used to redeem or repurchase 6.75% senior notes which were due in 2020. Additionally, the net proceeds will be used to pay redemption premiums and tender premiums on the senior Notes due in 2020 as well as repay some of the outstanding loans that Cott has obtained in its credit facilities that are asset-based. Since there wasn’t any registration of the New Notes under the Securities Act of 1933, or securities law of any state, selling or offering of the notes in the United States is prohibited.
Beverage sector player
As a well-diversified beverage firm, Cott has a presence in Europe and North America where it participates in various segments including custom coffee roasting and bottled water delivery for offices and homes. It is also one of the largest beverage producers in the world acting on behalf of distributors, brand owners and retailers. Some of the company’s clients include healthcare facilities, retailers, hotels and motels, restaurant chains, other business organizations and households. It is estimated that the Cott platform extends to delivery points or customers numbering approximately 2.3 million in both Europe and North America.
In Wednesday’s trading session shares of Cott Corporation (USA) fell marginally by 0.74% to close the day at $12.01 per share.
