Cara Operations Announces Closing of Over-Allotment Option for Total IPO Proceeds of $230 Million

TORONTO, Apr. 14, 2015 /CNW/ -


Cara Operations Limited (TSX:CAO) ("Cara" or the "Company"), Canada's largest full-service restaurant company and third largest restaurant operator based on 2013 sales, announced today that, in connection with its recently completed initial public offering of 8,700,000 subordinate voting shares ("Subordinate Voting Shares") at a price of $23.00 per share, the over-allotment option granted to the underwriters to purchase up to an additional 1,305,000 Subordinate Voting Shares was exercised in full for additional gross proceeds to Cara of $30,015,000. The sale of the additional shares today brings the aggregate gross proceeds to Cara to approximately $230.1 million. The net proceeds of the offering were used to repay indebtedness of the Company.

The Subordinate Voting Shares are listed on the Toronto Stock Exchange under the symbol "CAO". Following the closing of the over-allotment option, there are 11,542,870 Subordinate Voting Shares issued and outstanding, in addition to 37,396,284 multiple voting shares (the "Multiple Voting Shares") which are convertible into Subordinate Voting Shares on a one-for-one basis.

The Subordinate Voting Shares carry one vote per share. The Multiple Voting Shares, which are directly or indirectly owned by Fairfax Financial Holdings Limited and its subsidiaries ("Fairfax") and members of the Phelan family, carry 25 votes per share. Following the closing of the over-allotment option, Fairfax and members of the Phelan family continue to hold 37,396,284 Multiple Voting Shares representing approximately 76% of the Company's total issued and outstanding shares.

The offering was made through a syndicate of underwriters led by Scotia Capital Inc., BMO Capital Markets and RBC Capital Markets (acting as joint bookrunners) and including CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Cormark Securities Inc. and Laurentian Bank Securities Inc.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cara Operations Limited in any jurisdiction.

For further information: Cara Public Affairs Hotline, 905-532-5600