Sherritt International Corporation

Sherritt International Corporation

November 02, 2011 09:38 ET

Sherritt Announces Completion of Offering of Senior Unsecured Debentures and Redemption of 2012 Debentures

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2011) -


Sherritt International Corporation ("Sherritt" or the "Corporation") (TSX:S) announced today the completion of its offering of $400 million principal amount of 8% Senior Unsecured Debentures Series 1 due November 15, 2018, pursuant to a prospectus supplement dated October 28, 2011 to Sherritt's short form base shelf prospectus dated October 21, 2011. The net proceeds of $392 million (after agents' fees but before deduction of expenses) will be used to fund the redemption of all of the $274 million outstanding principal amount of Sherritt's 7.875% Senior Unsecured Debentures Series A due November 26, 2012 (the "2012 Debentures"), including the applicable make-whole premium, and the remainder for general corporate purposes.

Sherritt today also announced its intention to redeem the $274 million principal amount of its 2012 Debentures on December 2, 2011 (the "Redemption Date"). The redemption price has been determined in accordance with the terms of the trust indenture governing the 2012 Debentures dated November 25, 2005 and the first supplemental indenture thereto dated November 25, 2005. Holders of the 2012 Debentures will receive a total redemption price of $1,059.72 per $1,000 principal amount of 2012 Debentures, comprising $1,058.43 in satisfaction of the redemption price plus $1.29 in accrued and unpaid interest (up to but excluding the Redemption Date). Holders of the 2012 Debentures will receive a semi-annual interest payment on November 26, 2012.

Notice of the redemption will be delivered today to CDS Clearing and Depository Services Inc. ("CDS") and the trustee, Computershare Trust Company of Canada.

About Sherritt

Sherritt is a world leader in the mining and refining of nickel from lateritic ores with projects and operations in Canada, Cuba, Indonesia and Madagascar. The Corporation is the largest coal producer in Canada and is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide. The Corporation's common shares are listed on the Toronto Stock Exchange under the symbol "S".

Forward-Looking Information

Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industries in which the Corporation operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Corporation. The forward-looking statements contained in this news release represent the Corporations' expectations as of the date hereof, and are subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

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