Superior Redeems $150 million debentures today.
TORONTO, ONTARIO--(Marketwired - Aug. 11, 2016) - Superior Plus Corp. ("Superior") (TSX:SPB) is announcing that it will redeem the entire $149,999,500 outstanding principal amount of its 6.00% convertible unsecured subordinated debentures due June 30, 2018 (the "6.00% Debentures") in accordance with the indenture governing the 6.00% Debentures. The 6.00% Debentures will be redeemed on September 15, 2016 (the "Redemption Date") at the redemption price (the "Redemption Price") which is equal to the outstanding principal amount of the 6.00% Debentures to be redeemed, together with all accrued and unpaid interest thereon up to the Redemption Date, being $1,012.6575 per $1,000 principal amount of the 6.00% Debentures. The 6.00% Debentures that are redeemed 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 6.00% Debentures. Pursuant to the terms of the indenture governing the 6.00% Debentures, holders of the 6.00% Debentures have the right until the last business day prior to the Redemption Date to convert their 6.00% Debentures into common shares of Superior ("Common Shares") at a conversion price of $15.10, being a rate of 66.2252 Common Shares per $1,000 principal amount of 6.00% Debentures. "We are pleased to announce the redemption of the 6.00% Debentures. The divestiture of the Construction Products Distribution business on August 9, 2016 has reduced Superior's total leverage and 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 and pursue accretive acquisitions," stated Beth Summers, Vice-President and Chief Financial Officer. Interest expense is going to go way down. Diluted eps will be more in line with regular EPs