Superior Plus arranges $150-million note financing
SUPERIOR PLUS Corp.’ s wholly owned subsidiary Superior Plus LP has, pursuant to an underwriting agreement entered into today, agreed to issue and sell an additional $150-million principal amount of its 5.25 per cent senior unsecured notes due Feb. 27, 2024, by way of a private placement under the indenture pursuant to which Superior LP previously issued $250-million of notes on Feb. 27, 2017. The additional notes will be issued at $1,015 per $1,000 principal amount, and interest thereon will be payable semi-annually in arrears in equal instalments on Feb. 27 and Aug. 27 of each year with the first interest payment commencing on Feb. 27, 2018. The additional notes will form a single series with the previously issued notes. The private placement is expected to close on or about Oct. 16, 2017, subject to customary closing conditions.
The net proceeds from the issuance of the additional notes will be used to finance the redemption of Superior’s issued and outstanding 6.00 per cent convertible unsecured subordinated debentures due June 30, 2019 (of which there is $97-million ag-
gregate principal amount outstanding), and to initially repay drawn amounts under Superior LP’s syndicated revolving credit facility, which can be redrawn for general corporate purposes. The redemption of the 6.00 per cent debentures is being completed on Nov .15,2017, in accordance with the terms of the indenture governing the 6.00 per cent debentures at a redemption price which is equal to the outstanding principal amount of the 6.00 per cent debentures to be redeemed, together with all accrued and unpaid interest thereon up to, but excluding, the redemption date, being $1,022.6849 per $1,000 principal amount of the 6.00 per cent debentures. The 6.00 per cent debentures that are redeemed will cease to bear interest from and after the redemption date.
Pursuant to the terms of the indenture governing the 6.00 per cent debentures, holders of the 6.00 per cent debentures have the right until the last business day prior to the redemption date to convert their 6.00 per cent debentures into common shares of Superior at a conversion price of $16.75, being a rate of 59.7015 common shares per $1,000 principal amount of 6.00 per cent debentures.
National Bank Financial Inc., CIBC World Markets Inc. and BMO Nesbitt Burns Inc. are acting as joint book-running managers for the private placement, which also includes Scotia Capital Inc., TD Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., AltaCorp Capital Inc., Casgrain & Company Ltd. and Cormark Securities Inc. as co-managers. About Superior Plus Corp. Superior consists of two primary operating businesses: energy distribution includes the distribution of propane and distillates and supply portfolio management; and specialty chemicals includes the manufacture and sale of specialty chemicals.
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Catherine May Best, Eugene V N Bissell, Richard Bradeen, Luc Desjardins, Randall James Findlay, Patrick Gottschalk, Douglas J Harrison, Mary B Jordan, Walentin Mirosh, David Paul Smith
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