TSX: SPF.UN
CALGARY, June 14 /CNW/ - Superior Plus Income Fund (the "Fund") today
closed its previously announced convertible debenture bought-deal financing.
At closing, the Fund issued $175 million principal amount of 5.75% convertible
unsecured subordinated debentures (the "Debentures"), including $25 million
Debentures issued pursuant to the exercise of the underwriter's option on
June 3, 2005. The Debentures were offered to the public through a syndicate of
underwriters led by Scotia Capital Inc. and RBC Capital Markets and included
CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc.,
HSBC Securities (Canada) Inc., and Canaccord Capital Corporation. The
Debentures are listed for trading on the Toronto Stock Exchange under the
symbol SPF.DB.B.
As reported earlier, the net proceeds of the offering (approximately
$167.5 million) will be used to reduce bank debt, the majority of which was
incurred in connection with the previously announced acquisitions made by the
Fund's wholly owned subsidiary, Superior Plus Inc. ("Superior") and for the
construction of a $65 million sodium chlorate plant in Chile. Since
December 2004, Superior has acquired Interior Building Supplies, Foster
Energy, Leon's Insulation and the chloralkali business in Port Edwards,
Wisconsin, for an aggregate cost of approximately $120 million.
The Debentures have a maturity date of December 31, 2012 and are
convertible, at the option of the holder, into fully paid trust units of the
Fund at a conversion price of $36.00 per trust unit, being a rate of
27.7778 trust units per $1,000 principal amount of Debentures.
The Fund holds 100% of Superior Plus Inc., which has four 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;
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 trade on the Toronto Stock Exchange (the "TSX")
under the trading symbol SPF.UN. There are 77.9 million trust units
outstanding. The Fund has $10.4 million principal amount of Series 1 and
$66.9 million of Series 2, 8%; and $175.0 million of 5.75% Convertible
Unsecured Subordinated Debentures outstanding, that trade on the TSX under the
trading symbols SPF.DB, SPF.DB.A and SPF.DB.B, respectively.
