CALGARY, ALBERTA--(Marketwired - May 26, 2015) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Superior (TSX:SPB) is announcing that it will redeem the entire $172.5 million outstanding principal amount of its 5.75% Debentures in accordance with the indenture governing the 5.75% Debentures. The 5.75% Debentures will be redeemed on June 30, 2015 (the "Redemption Date") at the redemption price (the "Redemption Price") which is equal to the outstanding principal amount of the 5.75% Debentures to be redeemed, together with all accrued and unpaid interest thereon up to the Redemption Date, being $1,028.75 per $1,000 principal amount of the 5.75% Debentures. The 5.75% Debentures will cease to bear interest from and after the Redemption Date. Superior intends to use funds from its existing credit facility to fund the redemption of the 5.75% Debentures.
Pursuant to the terms of the Indenture governing the 5.75% Debentures, holders of the 5.75% Debentures have the right until the last business day prior to the Redemption Date to convert their 5.75% Debentures into common shares of Superior ("Common Shares") at a conversion price of $19.00, being a rate of 52.6316 Common Shares per $1,000 principal amount of 5.75% Debentures.
"We are pleased to be able to announce the redemption of the 5.75% Debentures. Superior's ongoing focus on reducing total leverage has provided Superior with the necessary financial flexibility to be able to proactively manage its balance sheet maturities and optimize interest costs while maintaining sufficient flexibility to operate the businesses," stated Wayne Bingham, Executive Vice President and Chief Financial Officer.
About the Corporation
Superior consists of three primary operating businesses: Energy Services includes the distribution of propane and distillates, providing fixed-price energy services, and supply portfolio management; Specialty Chemicals includes the manufacture and sale of specialty chemicals; and Construction Products Distribution includes the distribution of specialty construction products.
Forward Looking Information
Certain information included herein is forward-looking, within the meaning of applicable Canadian securities laws. Such information is typically identified by words such as "anticipate", "believe", "could", "estimate", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes. Forward-looking information in this news release includes the redemption, the source of funds for such redemption, of the 5.75% Debentures, management of balance sheet maturities, optimization of interest costs and ongoing financial flexibility. Superior believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such information should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance. By its very nature, forward-looking information involves inherent assumptions, risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking information will not be achieved. These risks include, but are not limited to, those identified in Superior's 2014 Annual Information Form under the heading "Risk Factors". Should one or more of these risks and uncertainties materialize, or should assumptions described above prove incorrect, Superior's actual performance and results in future periods may differ materially from any projections of future performance or results expressed or implied by such forward-looking information. We caution readers not to place undue reliance on this information as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information.
Forward-looking information contained in this news release is provided for the purpose of providing information about management's goals, plans and range of expectations for the future and may not be appropriate for other purposes. Any forward-looking information is made as of the date hereof and, except as required by law, Superior does not undertake any obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.