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Premier Foods Raises $1.4 Billion to Escape Debt-Laden Past

Premier Foods Plc, the British maker of Mr Kipling cakes, plans to raise 828 million pounds ($1.4 billion) by selling shares and bonds to refinance debt that once brought it close to collapse.

A sale of new shares to existing investors will bring in 353 million pounds, while an issue of six- and seven-year bonds will raise 475 million pounds, the St Albans, England-based company said today in a statement. Premier Foods also agreed on a new 300 million-pound bank facility through 2019.