Business
Sherritt Announces Successful Closing of Transaction to Extend Debt Maturities and Strengthen its Capital Structure
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About this update from Sherritt International Corporation
[{"type":"text","content":"Sherritt Announces Successful Closing of Transaction to Extend Debt Maturities and Strengthen its Capital Structure\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n \n\n\n\n\n Sherritt International Corporation (“\n \n Sherritt\n \n ” or the “\n \n Corporation\n \n ”) (TSX:S) announced today that it has completed its previously announced transaction to extend the maturities of the Corporation’s notes obligations, reduce outstanding indebtedness and annual interest expense, and strengthen the Corporation’s capital structure (the “\n \n CBCA\n \n\n Transaction\n \n ”) pursuant to which, among other things, the Corporation’s previously outstanding 8.50% senior second lien secured notes due 2026 (the “\n \n Senior Secured Notes\n \n ”) in a principal amount of approximately $221 million, and its previously outstanding 10.75% unsecured PIK option notes due 2029 in a principal amount of approximately $70 million were collectively exchanged for approximately $266 million in aggregate principal amount of amended 9.25% senior second lien secured notes due 2031 (the “\n \n Amended Senior Secured Notes\n \n ”) pursuant to a plan of arrangement under the\n \n Canada Business Corporations Act\n \n (the “\n \n CBCA Plan\n \n ”).\n \n\n As previously announced, Sherritt will also implement a subsequent exchange transaction (the “\n \n Subsequent Exchange Transaction\n \n ”) pursuant to which certain holders will exchange approximately $17 million of their Amended Senior Secured Notes received pursuant to the CBCA Plan for an aggregate of 99 million common shares of the Corporation. All of the conditions precedent required to commence closing of the Subsequent Exchange Transaction have been satisfied and Sherritt expects implementation to be completed today.\n \n\n “The successful closing of our strategic transactions marks a significant milestone in our efforts to strengthen Sherritt’s financial foundation,” said Leon Binedell, President and CEO of Sherritt. “With lower outstanding note obligations, reduced interest expense and debt maturity extended to late 2031, we ar...