Oct 7 Canadian organic food company SunOpta Inc
said it has got $85 million from investment
manager Oaktree Capital Management LP, in exchange for preferred
shares, to pay off its second lien debt.
In reaching the agreement with Oaktree, SunOpta said it has
concluded the previously announced review of strategic
alternatives for the company.
The company's U.S.-listed shares were down 9.4 percent at
$6.34, and its Toronto-listed shares were down 9.2 percent at
C$8.40 in afternoon trading.
Brampton, Ontario-based SunOpta had hired financial and
legal advisers in June to explore strategic alternatives, months
after its largest shareholder Tourbillon Capital Partners LP
urged the company to sell itself due to its frustration with the
After Tourbillon made the first move, other hedge fund
investors such as West Face Capital and Engaged Capital
pressured the company to sell itself.
SunOpta also announced changes to its board on Friday, one
of which is the addition of two Oaktree-nominated independent
directors, Dean Hollis and Al Bolles.
Rothschild Inc is acting as financial adviser to SunOpta and
Davies Ward Phillips & Vineberg LLP and Stoel Rives are acting
as its legal advisers. Oaktree is represented by Kirkland &
Ellis LLP and Stikeman Elliott LLP.
(Reporting by Vishaka George in Bengaluru; Editing by Shounak