Maple Leaf Foods to redeem outstanding convertibles with C$91.3 million stock sale proceeds

By Caroline Salls

Pittsburgh, Dec. 6 - Maple Leaf Foods Inc. said it will redeem its outstanding convertible debentures for cash at par using C$91.3 million of the proceeds from its sale of C$165 million of common stock.

McCain Corp. holds C$50 million of the debentures.

The estimated redemption date is Jan. 6.

The redemption of these convertible debentures will allow the company to preserve the equity treatment of the amount of the debentures and avoid the payment of interest for 2005.

The balance of proceeds will be used to pay down debt.

Maple Leaf Foods is a Toronto-based Canadian food processing company.

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