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Superior Plus Income Fund announces closing of $175 million offering of convertible debentures
Superior Plus Income Fund announces closing of $175 million offering of convertible debentures.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\nTSX: SPF.UN\n\nCALGARY, June 14 /CNW/ - Superior Plus Income Fund (the \"Fund\") today\nclosed its previously announced convertible debenture bought-deal financing.\nAt closing, the Fund issued $175 million principal amount of 5.75% convertible\nunsecured subordinated debentures (the \"Debentures\"), including $25 million\nDebentures issued pursuant to the exercise of the underwriter's option on\nJune 3, 2005. The Debentures were offered to the public through a syndicate of\nunderwriters led by Scotia Capital Inc. and RBC Capital Markets and included\nCIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc.,\nHSBC Securities (Canada) Inc., and Canaccord Capital Corporation. The\nDebentures are listed for trading on the Toronto Stock Exchange under the\nsymbol SPF.DB.B.\nAs reported earlier, the net proceeds of the offering (approximately\n$167.5 million) will be used to reduce bank debt, the majority of which was\nincurred in connection with the previously announced acquisitions made by the\nFund's wholly owned subsidiary, Superior Plus Inc. (\"Superior\") and for the\nconstruction of a $65 million sodium chlorate plant in Chile. Since\nDecember 2004, Superior has acquired Interior Building Supplies, Foster\nEnergy, Leon's Insulation and the chloralkali business in Port Edwards,\nWisconsin, for an aggregate cost of approximately $120 million.\nThe Debentures have a maturity date of December 31, 2012 and are\nconvertible, at the option of the holder, into fully paid trust units of the\nFund at a conversion price of $36.00 per trust unit, being a rate of\n27.7778 trust units per $1,000 principal amount of Debentures.\nThe Fund holds 100% of Superior Plus Inc., which has four operating\ndivisions: Superior Propane is Canada's largest distributor of propane,\nrelated products and services; ERCO Worldwide is a leading supplier of\nchemicals and technology to the pulp and paper and water treatment industries;\nWinroc is the seventh largest distributor of walls and ceilings construction\nproducts in North America; and Superior Energy Management provides fixed price\nnatural gas supply services in Ontario and Quebec.\nThe Fund's trust units trade on the Toronto Stock Exchange (the \"TSX\")\nunder the trading symbol SPF.UN. There are 77.9 million trust units\noutstanding. The Fund has $10.4 million principal am...