Superior Plus to redeem C$75 million of 5.75% convertibles due 2012

By Toni Weeks

San Diego, Oct. 4 - Superior Plus Corp. intends to redeem C$75 million of its C$174.95 million of 5.75% convertible unsecured subordinated debentures due Dec. 31, 2012 on Nov. 7, according to a news release.

The redemption price will be par plus accrued interest, for a payment of C$1,020.4795 per C$1,000 principal amount of debentures.

Holders of the debentures may convert them until the last business day prior to the redemption date into common shares at a conversion price of C$36.00, which correlates to about 27.7778 common shares per C$1,000 principal amount of debentures.

The debentures to be redeemed will be selected by the trustee on a pro rata basis to the nearest multiple of C$1,000.

Superior will use the net proceeds from its recently completed public offering of debentures as well as borrowings from its credit facility to fund the redemption.

Executive vice president and chief financial officer Wayne Bingham said the company was pleased with both the ability to proactively reduce its 2012 debt maturity schedule by C$75 million and the successful financing.

"Our plan to finance and early redeem the 2012 debentures in tranches was implemented to minimize the potential impact of the widespread uncertainty we currently see in international capital markets," he said in the release. "Our financial position remains solid with approximately C$270 million of unutilized capacity on our syndicated bank facility."

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

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