Sherritt to tender for up to C$50 million 7% convertibles

By Jennifer Chiou

New York, Sept. 13 - Sherritt International Corp. announced plans to repurchase and cancel up to C$50 million of its 7% convertible unsecured subordinated debentures due Dec. 15, 2013 ahead of the first call date on Dec. 16.

The Toronto coal producer said that the purchase price will be determined by way of Dutch auction and will not be less than C$1,470 and not more than C$1,610 for each C$1,000 principal amount of debentures.

This price range represents a premium of up to 10% to the closing price of the debentures on Sept. 12.

As previously announced, given its strong earnings and cash flow generation, Sherritt said it considers this offer to be an effective use of its cash while still providing itself with the flexibility to pursue growth opportunities.

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