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Trading: TSX: ROC
TORONTO, Aug. 21 /CNW/ - Rothmans Inc. announced today that its 60%-owned subsidiary, Rothmans, Benson & Hedges Inc. ("RBH") is repaying its currently outstanding 5.552% Senior Unsecured Bonds due December 21, 2011 in the principal amount of C$150 million (the "Bonds").
RBH has received a waiver of certain events of default from CIBC Mellon Trust Company, as Trustee, in accordance with an extraordinary resolution of the holders of the Bonds which authorized the Trustee to waive the events of default noted in the extraordinary resolution and to amend the trust indentures to require a mandatory redemption of the Bonds. It is expected that holders of Bonds will receive on August 26, 2008 in aggregate the principal of C$150 million and accrued interest of C$1,505,884.93 on the outstanding Bonds, together with a make-whole premium of C$10,206,000.00 (calculated on August 21, 2008). RBH is funding the redemption of the Bonds from the proceeds of its one-year revolving loan facility with JP Morgan Chase Bank, N.A. and from working capital.
Forward Looking Statements
Certain statements contained in this release constitute "forward-looking statements" and express views as to future events, circumstances and trends relating to the business of RBH and Rothmans Inc. Words such as "plans," "intends," "outlook," "expects," "anticipates," "estimates," "believes," "should" and similar expressions may identify forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions and entail various risks and uncertainties. There is no assurance that any forward-looking statement will materialize. Actual results may differ materially from these expectations and forward-looking statements, if known and unknown risks or uncertainties affect RBH's business or Rothmans Inc., or if management's expectations or assumptions prove to be inaccurate. Factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to, the wire transfers of funds to repay the Bonds from JPMorgan and RBH to CDS (who will then forward such funds to the holders of the Bonds) not being processed on August 26, 2008 in a timely manner. Rothmans Inc. disclaims any obligation or intention to update or revise any forward-looking statement, whether the result of new information, future events or otherwise, except as otherwise required by applicable law. Additional information concerning risks and uncertainties affecting Rothmans Inc. and RBH is contained in the Company's filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form (in particular under "Legal Proceedings" and "Risk Factors") available on SEDAR at www.sedar.com or on the Company's website at www.rothmansinc.ca.