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Superior Plus Announces $150,000,000 Public Offering of Convertible Unsecured Subordinated Debentures
Superior Plus Announces $150,000,000 Public Offering of Convertible Unsecured Subordinated Debent...
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nFeb. 23, 2010 (Canada NewsWire Group) -- CALGARY, Feb. 23 /CNW/ -- Superior Plus Corp. (\"Superior\" or the \"Corporation\" TSX: SPB) announced today that it has reached an agreement with a syndicate of underwriters co-led by TD Securities Inc. and CIBC, and including Scotia Capital Inc., National Bank Financial Inc., BMO Capital Markets and Cormark Securities Inc. (collectively, the \"Underwriters\"), pursuant to which Superior will issue on a \"bought deal\" basis, subject to regulatory approval, $150,000,000 aggregate principal amount of convertible unsecured subordinated debentures (the \"Debentures\") at a price of $1,000 per Debenture. Superior has granted to the Underwriters an over-allotment option to purchase up to an additional $22,500,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments. Superior intends to use the net proceeds from the Offering to repay existing revolving term bank debt and for general corporate purposes.Wayne Bingham, Executive Vice-President and Chief Financial Officer stated \"The Debenture issue completes the long-term financing for the 4 acquisitions completed over the last 6 months in addition to the completion of the expansion of the Port Edwards chloralkali facility. These expenditures have resulted in a significant expansion of our business platforms and are key to facilitating Superior's future growth. Superior has always maintained a strong financial position and this Debenture offering further strengthens our financial position, providing Superior with the financial flexibility to execute on future opportunities. Superior's December 31, 2009 pro forma Senior Debt to compliance EBITDA ratio will be reduced to 2.2:1 and is consistent with Superior's long-term intent to reduce its Senior Debt leverage ratio to within our targeted ratio of 1.5:1 to 2.0:1\".The Debentures will bear interest from the date of issue at 5.75% per annum, payable semi-annually in arrears on June 30 and December 31 each year commencing June 30, 2010. The Debentures will have a maturity date of June 30, 2017 (the \"Maturity Date\").The Debentures will be convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date a...