Superior Plus to redeem remaining C$49.94 million 5.75% convertibles

By Toni Weeks

San Diego, June 28 - Superior Plus Corp. said it would redeem the remaining C$49,943,000 principal amount of its 5.75% convertible unsecured subordinated debentures due Dec. 31, 2012.

The debentures will be redeemed Aug. 1 at par plus accrued interest up to the redemption date, for a payment of C$1,005.0411 per C$1,000 principal amount.

Holders may also convert the debentures until the last business day prior to the redemption date into common shares at a conversion price of C$36.00, or 27.7778 common shares per C$1,000 principal amount. Superior Plus stock closed at C$6.10 on Wednesday.

Superior will use funds from its existing credit facility to finance the debentures.

"We are extremely pleased to provide the capital markets with certainty on the timing of the redemption of the remaining $49,943,000 2012 debenture obligation," executive vice president and chief financial officer Wayne Bingham said in a press release.

"Superior continues to make excellent progress on reducing its total debt and is currently on track to meet its forecasted total debt to EBITDA leverage ratio range of 4.4x to 4.6x as provided in Superior's first-quarter earnings release. Upon completion of this redemption, Superior will maintain approximately $250 million of unutilized capacity on its syndicated bank facility."

Superior Plus is based in Calgary, Alta. The company operates three primary businesses: energy services, specialty chemicals and construction products distribution.

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