TSX: SPF.UN
CALGARY, May 11 /CNW/ - Superior Plus Income Fund (the "Fund") and
Superior Plus Inc. ("Superior") announced today that RBC Capital Markets and
TD Securities have been engaged as financial co-advisors to assist the
Strategic Review Committee of the Board in identifying the best possible
alternatives to maximize unitholder value and to execute on that strategy.
As reported in the news release dated April 24, 2006, the strategic
review has been launched due to anticipated weakness in the operating results
of ERCO Worldwide over the medium term, one of the principal businesses of the
Fund, as well as due to the reduction of the Fund's monthly distribution, and
the weakness in the Fund's unit price.
In commenting on the engagement of the financial advisors, Grant Billing,
Executive Chairman of Superior, stated: "With the outside expertise of our
financial advisors, we will now commence the strategic review process by
undertaking a comprehensive review of each of our businesses and our corporate
structure, which we would expect to be completed by the end of the second
quarter. We believe that we have five valuable businesses with experienced
operating management teams and unitholders will be kept informed as we have
material developments to disclose."
About the Fund
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The Fund holds 100% of Superior Plus Inc., which has five different
businesses. The Fund's operating distributable cash flow by business for the
year ended December 31, 2005 after giving effect to the acquisition of JW
Aluminum, as if it had been acquired January 1, 2005, is as follows:
35% Superior Propane, Canada's largest distributor of propane, related
products and services;
35% ERCO Worldwide, a provider of specialty chemicals and related
technology;
17% JW Aluminum, a manufacturer of specialty flat-rolled aluminum
products;
11% Winroc, a distributor of specialty construction products to the
walls and ceilings construction industry; and
2% Superior Energy Management, a fixed price natural gas retailer.
The Fund's trust units and convertible debentures trade on the Toronto
Stock Exchange as follows:
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Trading Symbol Security Issued and Outstanding
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SPF.un Trust Units 85.5 million
SPF.db 8% Debentures, Series 1 $ 8.1 million principal amount
SPF.db.a 8% Debentures, Series 2 $ 59.0 million principal amount
SPF.db.b 5.75% Debentures $174.9 million principal amount
SPF.db.c 5.85% Debentures $ 75.0 million principal amount
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Forward Looking Statements: Certain information included herein is
forward-looking. Forward-looking statements include, without limitation,
statements regarding the future financial position, business strategy,
budgets, projected costs, capital expenditures, financial results, taxes and
plans and objectives of or involving the Fund and Superior. Many of these
statements can be identified by looking for words such as "believe",
"expects", "expected", "will", "intends", "projects", "anticipates",
"estimates", "continues", or similar words. The Fund and Superior believe the
expectations reflected in such forward-looking statements are reasonable but
no assurance can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
Forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties some of which are described in the
Fund's annual report, renewal annual information form and other continuous
disclosure documents. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause the Fund's or
Superior's actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Any forward-looking
statements are made as of the date hereof and neither the Fund nor Superior
undertakes any obligation, except as required under applicable law, to
publicly update or revise such statements to reflect new information,
subsequent or otherwise.
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