Clareste Wealth Management Inc. to Host a Conference Call on March 25th, 2025 for Sherritt International Corporation Noteholders to Discuss the Proposed Exchange Offer
TORONTO, March 24, 2025 /CNW/ - Clareste Wealth Management Inc. ("Clareste") believes that Sherritt International Corporation's ("Sherritt") (TSX: S) proposed transaction to extend the maturities of the Corporation's note obligations to November 2031 is prejudicial to both the existing 8.5% Senior Secured Notes that are NOT part of the Initial Consenting Noteholders and the 10.75% Unsecured Notes. Clareste will hold a conference call to discuss the proposed exchange offer.
The Senior Secured Notes are being asked to extend maturity for five years for a nominal 0.75% increase in interest rate and consent to the elimination of protective covenants. The prejudicial aspect of the deal is that a select 42% of Senior Secured Notes will receive a higher consent payment, preferential early Secured Note repayment, the right to convert to common equity immediately following the transaction, and the right to nominate a director to the board.
The Unsecured Noteholders are being asked to extend maturity by two years, reduce coupon interest payment to 9.25% from 10.75% and take a 40% haircut to the principal amount outstanding.
While Noteholders are being asked to make material concessions, shareholders whose rights are subordinated to Noteholders are not materially impacted by the proposal. In addition, the Unsecured Notes did not receive cash interest payments in the amount of $19 million over the past three years, yet management bonus payments totaled $34 million during the same period.
In response to this inadequate proposal, Clareste has formed an ad hoc bondholder committee and would like to invite all current Noteholders to participate in a conference call on Tuesday March 25th, 2025 at 3:30 PM EST. The purpose of call is to unify both institutional and retail Noteholders in order to engage in constructive discussions with Sherritt to pursue a transaction that improves its capital structure and provides equitable consideration to both Senior Secured Notes and Unsecured Notes.
A conference call for members of the ad hoc creditor committee and current Noteholders will be held on Tuesday March 25th, 2025 at 3:30 PM. To participate, please call 416-642 5703 prior to noon on March 25th, 2025 to register and receive login instructions.
SOURCE Clareste Wealth Management Inc.
Robert Ulicki, Clareste Wealth Management Inc., 416-642 5703, [email protected]
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