TSX: SPF.UN
CALGARY, Feb. 28 /CNW/ - Superior Plus Income Fund (the "Fund") announced
today that its wholly owned subsidiary, Superior Plus Inc. ("Superior") has
agreed to issue $200 million of senior secured medium term note debentures
(the "Notes"). The Notes will have a coupon rate of 5.50% and mature on
March 3, 2016. The Notes were sold at a price of 99.484 to yield 5.568% to
maturity. A credit rating of BBB- has been assigned to the Notes by Standard &
Poor's and a credit rating of BBB(low) was assigned by Dominion Bond Rating
Service Limited. Closing is expected to occur on March 3, 2006. The net
proceeds of the offering will be used to repay existing indebtedness of
Superior, including indebtedness incurred in connection with the acquisition
of JW Aluminum Company, and for general corporate purposes.
The offering is being underwritten by TD Securities Inc., and the Notes
will be issued pursuant to Superior's Shelf Prospectus dated
February 23, 2006. The prospectus has been filed with the various securities
commissions in Canada and is available at www.sedar.com.
Mark Schweitzer, Executive Vice-President and Chief Financial Officer
said, "This offering provides more permanent debt financing for our recent
acquisition of JW Aluminum, strengthens our balance sheet and diversifies our
debt sources."
About Superior and the Fund
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The Fund holds 100% of Superior Plus Inc., which has five operating
divisions: Superior Propane is Canada's largest distributor of propane,
related products and services; ERCO Worldwide is a leading supplier of
chemicals and technology to the pulp and paper and water treatment industries
and the second largest producer of potassium products in North America; JW
Aluminum is a leading manufacturer of specialty, flat-rolled aluminum products
in the United States; Winroc is the seventh largest distributor of walls and
ceilings construction products in North America; and Superior Energy
Management provides fixed price natural gas supply services in Ontario and
Quebec.
The Fund's trust units and convertible debentures trade on the Toronto
Stock Exchange (the "TSX") as follows:
Trading
Symbol Security Issued and Outstanding
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SPF.un Trust Units 85.5 million
SPF.db 8% Debentures, Series 1 $ 8.5 million principal amount
SPF.db.a 8% Debentures, Series 2 $ 59.0 million principal amount
SPF.db.b 5.75% Debentures $175.0 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, Superior and potential
acquisitions. 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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The Notes offered pursuant to the offering have not and will not be
registered under the United States Securities Act of 1933 and may not be
offered or sold in the United States.
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