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Superior Announces Redemption of Outstanding Series 2 8% Debentures
Superior Announces Redemption of Outstanding Series 2 8% Debentures.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nTSX:SPF.UN\n\n\nCALGARY, Oct. 2 /CNW/ - Superior Plus Income Fund (the "Fund") announced\ntoday that it will redeem all the outstanding series 2 8% extendible\nconvertible unsecured subordinated debentures (the "Debentures") due\nNovember 1, 2008 in accordance with the indentures governing the Debentures.\nThe Debentures will be redeemed on November 5, 2007 (the "Redemption Date") at\nthe redemption price (the "Redemption Price") which is equal to the\noutstanding principal amount of the Debentures to be redeemed, together with\nall accrued and unpaid interest thereon up to the Redemption Date, being\n$1,000.8768 per $1,000 principal amount of Debentures. The Debentures will\ncease to bear interest from and after the Redemption Date.\n\n\nPursuant to the terms of the indentures governing the Debentures,\nDebentureholders have the right until the last business day prior to the\nRedemption Date to convert their Debentures into trust units. Debentureholders\nwho exercise this right and tender Debentures for conversion will receive\napproximately 50 trust units per $1,000 principal amount of Debentures.\n\n\nThe aggregate amount of outstanding Debentures as of the date hereof is\n$58,943,000.\n\n\nOn the Redemption Date, the Redemption Price of each Debenture to be\nredeemed will become due and payable, the interest upon the principal amount\nof such Debenture shall cease to be payable from and after such date and the\nDebentures will be delisted from the Toronto Stock Exchange. The Redemption\nPrice shall be paid by the Fund on November 5, 2007 on presentation and\nsurrender of the Debentures at Computershare Trust Company of Canada's office\nat Suite 710, 530-8th Avenue SW, Calgary , Alberta, T2P 3S8.\n\n\nThe refinancing of the Debentures with Superior's $565 million syndicated\ncredit facility will provide significant interest cost and standby fee savings\nrelative to the fixed 8 percent coupon rate. The redemption of the Debentures\nallows Superior to rebalance its debt portfolio to 43 percent floating and\n57 percent fixed consistent with its risk management guidelines. Superior is\nprojected to have greater than $450 million in credit capacity available at\nthe end of 2007, which includes its securitization program at an average\nutilization of $100 million.\n\n\nAbout Superior ...