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Sherritt tenders for up to C$100 million 6% convertibles
New York, Oct. 18 - Sherritt International Corp. said it has started a tender offer for up to C$100 million of its C$300 million outstanding 6% convertible unsecured subordinated debentures due Dec. 15, 2006.
The Toronto natural resource company is offering C$1,085 per C$1,000 principal amount.
Sherritt said the offer is a continuation of its strategy begun in 2000 of making an "orderly retirement" of the convertibles as business conditions warrant.
"Given its strong earnings and cash flow generation, Sherritt considers the offer to be an effective use of cash, while still providing the corporation with the flexibility to pursue growth opportunities," the company said in a news release.
Sherritt said the price it is offering is a 3.3% premium to the closing price of the convertibles on Oct. 15.
As part of the tender, Sherritt will hold a special meeting of debentureholders on Dec. 2 to authorize it to amend the indenture so that it can repurchase the debentures above par.
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