Sherritt International Corporation
TSX : S
TSX : S.DB.A

Sherritt International Corporation

October 24, 2006 16:58 ET

Sherritt Announces Results of Offer to Purchase 7% Convertible Debentures

TORONTO, ONTARIO--(CCNMatthews - Oct. 24, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sherritt International Corporation (TSX:S) (TSX:S.DB.A) announced today that pursuant to its offer to purchase dated September 14, 2006, it will purchase $50 million of its outstanding 7% convertible unsecured subordinated debentures due December 15, 2013 ("Debentures") at a price of $1,610 per $1,000 principal amount, plus accrued interest. The offer to purchase was conducted by way of "dutch auction" which expired on October 23, 2006. The auction elicited tenders of approximately $121.5 million principal amount of Debentures. Sherritt will pay $1,610 per $1,000 principal amount of Debentures. Based on a preliminary count by the depositary for the offer to purchase, Sherritt expects to purchase tendered Debentures on a pro-rata basis of approximately 41.16%. The Debentures tendered pursuant to the offer to purchase will be taken up and paid for by Sherritt on or about October 26, 2006.

Sherritt International Corporation is a diversified resource company involved in the production of thermal coal, nickel, cobalt, oil and electricity. Its success is built on utilizing innovative technologies and the breadth of its financial and operational expertise to increase productivity and profitability. Sherritt continues to explore opportunities to grow its $2.4 billion asset base through expansion of its existing businesses and strategic acquisitions.

Sherritt's 152 million common shares and $142 million principal amount of Debentures trade on the Toronto Stock Exchange under the symbols S and S.DB.A respectively. Sherritt's $274 million principal amount of 7.875% Senior Unsecured Debentures Series A, due November 26, 2012 trade on the over the counter bond market.

Contact Information

  • Sherritt International Corporation
    Investor Relations
    (416) 924-4551
    Website: www.sherritt.com