Nashville, May 24 - Superior Plus Income Fund sold C$150 million of 7.5-year convertible debentures at par to yield 5.75% with a 15.5% initial conversion premium via joint lead managers Scotia Capital Inc. and RBC Capital Markets.
The bought deal will close June 14.
"This offering provides more permanent financing for our recent acquisitions, strengthens our balance sheet, and provides increased flexibility for future growth," said Geoffrey Mackey, CEO of Superior.
The fund is parent to Superior Plus Inc., which has four operating divisions: Superior Propane, ERCO Worldwide, Winroc and Superior Energy Management. Proceeds will be used to finance previously announced acquisitions, to finance ERCO Worldwide's previously announced construction of a $65 million sodium chlorate plant in Chile, to reduce bank debt and for general corporate purposes.
Since December 2004, Superior has acquired Interior Building Supplies, Foster Energy and Leon's Insulation, which together with the pending acquisition of a chloralkali business in Port Edwards, Wis., total about $120 million.
Terms of the deal are:
| Issuer: | Superior Plus Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | Scotia Capital Inc. and RBC Capital Markets
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| Co-managers: | CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Capital Corp.
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| Amount: | C$150 million
|
| Greenshoe: | C$25 million
|
| Maturity: | Dec. 31, 2012
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| Coupon: | 5.75%
|
| Price: | Par
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| Yield: | 5.75%
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| Conversion premium: | 15.5%
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| Conversion price: | $36.00
|
| Conversion ratio: | 27.7779
|
| Call: | Non-callable for 3 years, then with 125% hurdle for 2 years
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| Pricing date: | May 24
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| Settlement date: | June 14
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| Distribution: | Public offering
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