Article content
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Article content
TORONTO — Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX:S) announced today that it has completed its previously announced transaction to extend the maturities of the Corporation’s notes obligations, reduce outstanding indebtedness and annual interest expense, and strengthen the Corporation’s capital structure (the “CBCA Transaction”) pursuant to which, among other things, the Corporation’s previously outstanding 8.50% senior second lien secured notes due 2026 (the “Senior Secured Notes”) in a principal amount of approximately $221 million, and its previously outstanding 10.75% unsecured PIK option notes due 2029 in a principal amount of approximately $70 million were collectively exchanged for approximately $266 million in aggregate principal amount of amended 9.25% senior second lien secured notes due 2031 (the “Amended Senior Secured Notes”) pursuant to a plan of arrangement under the Canada Business Corporations Act (the “CBCA Plan”).
Article content
Article content
As previously announced, Sherritt will also implement a subsequent exchange transaction (the “Subsequent Exchange Transaction”) pursuant to which certain holders will exchange approximately $17 million of their Amended Senior Secured Notes received pursuant to the CBCA Plan for an aggregate of 99 million common shares of the Corporation. All of the conditions precedent required to commence closing of the Subsequent Exchange Transaction have been satisfied and Sherritt expects implementation to be completed today.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“The successful closing of our strategic transactions marks a significant milestone in our efforts to strengthen Sherritt’s financial foundation,” said Leon Binedell, President and CEO of Sherritt. “With lower outstanding note obligations, reduced interest expense and debt maturity extended to late 2031, we are now well-positioned to navigate the near-term market volatility, pursue our long-term objectives and create lasting value for our stakeholders.”
Article content
The CBCA Transaction and the Subsequent Exchange Transaction will collectively result in the reduction of the Corporation’s outstanding indebtedness by approximately $42 million in principal amount, the reduction of the Corporation’s annual interest expense by approximately $3 million, and the extension of maturities of the Corporation’s notes obligations to November 2031.
Article content
Sherritt has been provided with a copy of an Application for Review submitted by SC2 Inc. (“SC2”) to the Ontario Capital Markets Tribunal (the “Tribunal”) seeking to set aside the decision of the Toronto Stock Exchange (the “TSX”) to approve the listing of the common shares issuable by Sherritt pursuant to the Subsequent Exchange Transaction (the “Application for Review”) and other alternative relief. SC2 is affiliated with Seablinc Canada Inc., a significant supplier to Sherritt’s Moa Joint Venture in Cuba. Sherritt believes that SC2’s position and the relief requested in the Application for Review are entirely without merit. The Respondent in the Application for Review is the TSX, but Sherritt intends to provide evidence and participate in the Tribunal’s process to oppose the relief requested in the Application for Review.
Article content
Goodmans LLP is acting as Sherritt’s legal advisor in connection with the CBCA Transaction and the Subsequent Exchange Transaction, and National Bank Financial Inc. acted as its financial advisor. Bennett Jones LLP is acting as legal advisor to certain holders of the Senior Secured Notes.
Article content
Article content
About Sherritt
Article content
Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition. Sherritt’s Moa Joint Venture has an estimated mine life of approximately 25 years and is advancing an expansion program focused on increasing annual MSP production by 20% of contained nickel and cobalt. The Corporation’s Power division, through its ownership in Energas, is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10% of the national electrical generating capacity in Cuba. The Energas facilities are comprised of two combined cycle plants that produce low-cost electricity from one of the lowest carbon emitting sources of power in Cuba. Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
Article content
Forward-Looking Statements
Article content
This news release contains certain forward-looking statements. Forward-looking statements can generally be identified by the use of statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “should”, “suspect”, “outlook”, “projected”, “continue” or other similar words or phrases. Specifically, forward-looking statements in this document include, but are not limited to, statements set out in this news release relating to: the effect of the implementation of the CBCA Transaction and the Subsequent Exchange Transaction; the capital structure of the Corporation following the implementation of the CBCA Transaction and the Subsequent Exchange Transaction; the expected timing of the Subsequent Exchange Transaction’s implementation; and the potential outcomes of the Application for Review.
Article content
Forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about future events, including matters relating to the CBCA Transaction and the Subsequent Exchange Transaction; the Application for Review; commodity and product prices and demand; the level of liquidity and access to funding; share price volatility; production results; realized prices for production, earnings and revenues; global demand for electric vehicles and the anticipated corresponding demand for cobalt and nickel; the commercialization of certain proprietary technologies and services; advancements in environmental and Green House Gas (“GHG”) reduction technology; GHG emissions reduction goals and the anticipated timing of achieving such goals, if at all; statistics and metrics relating to environmental, social and governance (“ESG”) matters which are based on assumptions or developing standards; environmental rehabilitation provisions; environmental risks and liabilities; compliance with applicable environmental laws and regulations; risks related to the U.S. government policy toward Cuba; current and future economic conditions in Cuba; the level of liquidity and access to funding; Sherritt share price volatility; and certain corporate objectives, goals and plans for 2025. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that the assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections.