Business
Superior Plus Announces Distribution Reinvestment Plan
Superior Plus Announces Distribution Reinvestment Plan.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nTSX: SPF.UN\n\n\nCALGARY, Jan. 9 /CNW/ - Superior Plus Income Fund (the \"Fund\") announced\ntoday the commencement of a Distribution Reinvestment Plan and an Optional\nUnit Purchase Plan (the \"DRIP\"). Proceeds of the DRIP will be used to fund\ngrowth capital projects for its existing Canadian based businesses.\n\n\nGrant Billing, Chairman and Chief Executive Officer of Superior Plus,\nsaid: \"The DRIP will provide our unitholders with the opportunity to reinvest\ntheir cash distributions in the future growth of the business at a 5% discount\nto the market price of the trust units. The proceeds of the DRIP will assist\nSuperior Plus in funding accretive organic growth opportunities. Operating\nperformance of our businesses continues to meet expectations with annual\ndistributable cash flow per trust unit anticipated in the $1.60 to $1.80 range\nfor 2007, assuming no acquisitions or expansions of the existing businesses.\nWith the completion of the sale of JW Aluminum, our businesses can now focus\non their unique opportunities to expand and generate value growth for our\nunitholders going forward. The recent change in tax rules by the Federal\nGovernment is expected to have little impact on our growth strategy, as our\ncapital requirements are within the new guidelines and our threshold returns\nfor growth capital projects are well in excess of our cost of capital and more\nthan sufficient to account for the tax changes.\"\n\n\nUnder the terms of the DRIP, eligible unitholders of the Fund (the\n\"Unitholders\") may elect to automatically reinvest their regular monthly\ndistributions in additional trust units (the \"Units\") of the Fund, without\nincurring any commissions, service charges or brokerage fees. Unitholders who\nelect to reinvest cash distributions under the DRIP will receive Units at a\nprice (the \"Average Market Price\") equal to the average closing price of the\nUnits on the Toronto Stock Exchange for the five day trading period ending on\nthe business day immediately prior to the distribution payment date. The price\nof the Units purchased with reinvested distributions will be 95% of the\nAverage Market Price.\n\n\nUnitholders who participate in the DRIP may also elect to purchase\nadditional Units by way of cash payment, without incurring any commissions,\nservice charges or brokerage fees. Units purch...