CCMP Capital Advisors’ Jamieson closes $300M IPO on TSX

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By Ted Liu

Jamieson Wellness Inc. (TSX: JWEL), a portfolio company of CCMP Capital Advisors, LP, has closed proposed initial public offering and secondary offering of 19,050,000 common shares at $15.75 per share for gross proceeds of $300,037,500.

Jamieson stock opened at $16.50 and traded at $17.21 as at Jul 7, 2017, 1:15 PM EDT.

The offering consist of a treasury offering of 15,554,755 common shares for $244,987,391 and a secondary offering of 3,495,245 common shares by selling shareholder for $55,050,109.

Under the secondary offering, CCMP Capital Investors III funds, Mark Hornick (CEO), Christopher Snowden (CFO), and Headlines Promotions Inc., an entity controlled by Lorna Vanderhaeghe, sold 2,488,097 ($39,187,528), 93,742 ($1,476,437), 112,487 ($1,771,670) and 800,919 ($12,614,474) common shares, respectively.

CCMP has granted to the underwriters an over-allotment option for additional 2,857,500 common shares, if exercised in full, will bring the total size of the offering to $345,043,125.

The offering was made through a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets acting as joint bookrunners. McCarthy Tétrault LLP and Osler, Hoskin & Harcourt LLP acted as legal counsel to Jamieson and the underwriters respectively.

Jamieson Wellness intends to use net proceeds of the treasury offering to: (i) repay a portion of Jamieson Laboratories’ outstanding indebtedness under the Term Loan Facility in the amount of $50,000,000; and (ii) repay approximately $173,125,557 of notes issued in connection with (A) the repayment of the Finco PN ($83,500,590 principal and approximately $14,788,883 interest), (B) the payment of dividends in the amount of approximately $9,604,651 to the preferred shareholders, and (C) a return of capital to the preferred shareholders in the amount of $65,231,433, all as part of the pre-closing capital changes.

photo credit: Jamieson