VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 4, 2014) - Tree Island Steel Ltd. (the "Company" or "Tree Island Steel") (TSX:TSL) (TSX:TSL.DB) announced today that it has completed the previously announced redemption of its 10% Second Lien Convertible Debentures scheduled to mature on November 26, 2014 (the "Debentures") on March 4, 2014 (the "Redemption Date") for an aggregate principal amount of $174,600.
On the Redemption Date, the Company paid to the holders of the Debentures the redemption price equal to the outstanding principal amount of the Debentures redeemed together will all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $101.6986 per $100 principal amount of Debentures held.
Holders of Debentures that elected to convert to common shares of the Company converted at a rate of 200 common shares for each $100 principal amount of Debentures. Between January 1, 2014 and the Redemption Date, a total of $15,969,400 in principal amount of Debentures was converted to 31,938,800 shares. The current amount of outstanding common shares is 60,687,650.
"We are pleased with the confidence being shown in the future of Tree Island Steel with the recent conversions of Debentures into common shares of the Company," said Dale R. MacLean, President and CEO.
Amar S. Doman, Chairman of Tree Island Steel noted "I am very pleased that the debenture redemption is now complete. This further strengthens Tree Island's balance sheet and earnings profile allowing us to pursue growth opportunities."
About Tree Island Steel
Headquartered in Richmond, British Columbia, since 1964, Tree Island Steel, through its four operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction, agricultural, and specialty applications. Its products include galvanized and bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island, Halsteel, K-Lath, Industrial Alloys, TI Wire, and Tough Strand brand names. Tree Island Steel also owns and operates a China-based company that assists the international sourcing of products.