Sherritt wins court order to extend $720 million notes by three years

By Susanna Moon

Chicago, July 27 – Sherritt International Corp. said it gained court approval at the Wednesday hearing to extend $720 million of outstanding senior debentures by three years, effective Friday.

Sherritt obtained a final court order from the Ontario Superior Court of Justice approving the plan of arrangement under the Canada Business Corporations Act, according to a company announcement on Wednesday.

The three series of notes will be extended as follows, after the plan was approved by holders at a meeting held Monday in Toronto, according to a separate update on July 25:

• 8% senior debentures will mature on Nov. 15, 2021;

• 7½% senior debentures will mature on Sept. 24, 2023; and

• 7 7/8% senior notes will mature on Oct. 11, 2025.

The plan secured votes for more than 99% of those cast, with more than 94% of the noteholders represented at the meeting.

Noteholders holding about 36% of the notes will receive the early consent warrants and those holding 58% of the notes will receive the early consent cash amount.

As a result, 19,122,840 of early consent warrants will be issued.

As announced June 15, noteholders who voted for the extension and delivered an early consent election by July 19, the early consent date, could receive on closing of the extension, at their option:

• Cash consent fee of 2%; or

• 73.25 warrants exercisable for five years at a strike price of $0.74 per share for each $1,000 of principal amount of notes.

The record date was June 15.

In order to extend the notes, the company needed to obtain votes for at least 66 2/3% of the votes represented at the meeting.

Sherritt is a Toronto-based miner and refiner of natural resources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.