Superior Plus calls C$150 million of 6% convertibles due 2018 at par

By Susanna Moon

Chicago, Aug. 12 – Superior Plus Corp. plans to redeem its C$149,999,500 principal amount of outstanding 6% convertible unsecured subordinated debentures due June 30, 2018.

The convertibles will be redeemed on Sept. 15 at par plus accrued interest up to the redemption date, or $1,012.6575 per $1,000 principal amount, according to a company notice.

Superior said it plans to fund the redemption using funds from its credit facility.

Holders may convert the notes until the last business day before the redemption date at a conversion price of C$15.10, or a rate of 66.2252 common shares per $1,000 principal amount.

The company’s stock (Toronto: SPB) closed at C$11.51 on Aug. 11.

“The divestiture of the construction products distribution business on Aug. 9 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,” Beth Summers, the company’s vice president and chief financial officer, said in the press release.

Superior is a Calgary, Alta.-based marketer of propane, propane-burning appliances and related support services.

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