Sherritt calls 6% convertibles for stock, plans buyback of shares

New York, Jan. 28 - Sherritt International Corp. said it has called its C$200 million of 6% convertible unsecured subordinated debentures due Dec. 15, 2006 for redemption on March 9.

The Toronto natural resources company said it will pay the redemption price in stock at the rate of 106.49 shares per C$1,000 principal amount. The ratio was calculated using 95% of the weighted average trading price of Sherritt's stock for the 20 trading days ending five days before the announcement of the redemption.

Sherritt will also pay accrued interest in cash.

Holders can convert their securities to stock at a price of C$8.775 or 113.96 shares per $1,000 principal amount up to the day before the redemption.

Sherritt also said it plans to buy back 10 million shares through a one-time substantial issuer bid. It expects to complete the transaction shortly after the redemption.

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