Sherritt holding Dutch auction for C$75 million 7½%, 7 7/8%, 8% notes

By Wendy Van Sickle

Columbus, Ohio, Jan. 16 – Sherritt International Corp. announced it will begin Dutch auction tender offers to purchase up to C$75 million of three series of its outstanding senior debentures, according to a press release.

The debentures covered under the offers include the C$220 million of 8% debentures due 2021, the C$250 million of 7½% debentures due 2023 and the C$250 million of 7 7/8% debentures due 2025.

Eligible participants may specify either the minimum amount they are willing to receive for each C$1,000 principal amount or accept the clearing price determined by Sherritt.

Bid prices must be less than or equal to the maximum price per C$1,000 of notes, which is C$950 for the 8% debentures, C$900 for the 7½% debentures and C$880 for the 7 7/8% debentures.

Sherritt will use the bid prices received to determine the clearing price for each series.

The company will also pay accrued interest to the settlement date, which is expected to be Feb. 16.

The tender offer will open at 9 a.m. ET on Jan. 17 expire at 5 p.m. ET on Feb. 13.

Tenders may be withdrawn through the expiration deadline.

Sherritt said the main purpose of the offers is to reduce its outstanding liabilities. The company is simultaneously conducting an offering of units consisting of shares and warrants to raise up to C$100 million.

National Bank Financial Markets (416-869-8635) is acting as dealer manager for the offers, and Computershare Investor Services Inc. (1-800-564-6253) is acting as depositary.

Sherritt is a Toronto-based miner and refiner of natural resources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.