Superior Plus Announces Completion of Convertible Debenture Financing

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

TSX: SPB

CALGARY, March 16 /CNW/ - Superior Plus Corp. ("Superior" or the "Corporation") is pleased to announce the successful closing of the previously announced issue of $150,000,000 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per Debenture. The Debentures were offered to the public through a syndicate of underwriters co-led by TD Securities Inc. and CIBC, and including National Bank Financial Inc., Scotia Capital Inc., BMO Capital Markets and Cormark Securities Inc. (collectively, the "Underwriters"). The Underwriters maintain an over-allotment option to purchase up to an additional $22,500,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following March 16, 2010. As previously announced, Superior intends to use the net proceeds to repay existing revolving term bank debt and for general corporate purposes.

Wayne Bingham, Executive Vice-President and Chief Financial Officer stated "Superior continues to have excellent access to the capital markets; the closing of this Debenture financing further strengthens Superior's balance sheet, providing Superior with the financial flexibility to execute on future opportunities."

The Debentures bear interest from the date of issue at 5.75% per annum, payable semi-annually in arrears on June 30 and December 31 each year commencing June 30, 2010. The Debentures have a maturity date of June 30, 2017 (the "Maturity Date"). The Debentures are convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by Superior for redemption of the Debentures into fully paid and non-assessable common shares ("Common Shares") of Superior at a conversion price of $19.00 per Common Share, being a conversion rate of approximately 52.6316 Common Shares for each $1,000 principal amount of Debentures, subject to adjustments as provided in the indenture governing the Debentures. The Debentures will be listed on the Toronto Stock Exchange under the symbol "SPB.DB.E".

About the Corporation

Superior is a diversified corporation. Superior holds 100% of Superior Plus LP, a limited partnership formed between Superior General Partner Inc., as general partner and Superior as limited partner. Superior is focused on stability of dividends with value growth. Superior Plus LP consists of three primary operating businesses: Energy Services includes the distribution of propane and distillates and related fixed-price energy services; Specialty Chemicals includes the manufacture and sale of specialty chemicals; and Construction Products Distribution includes the distribution of specialty construction products.

The Corporation's common shares and convertible debentures trade on the TSX as follows:

    
    Trading Symbol     Security              Issued and Outstanding
    -------------------------------------------------------------------------
    SPB                Common Shares         104.9 million
    SPB.db.b           5.75% Debentures,     $174.9 million principal amount
                        Series 1
    SPB.db.c           5.85% Debentures,     $ 75.0 million principal amount
                        Series 1
    SPB.db.d           7.50% Debentures      $ 69.0 million principal amount
    SPB.db.e           5.75% Debentures      $ 150.0 million principal amount
    -------------------------------------------------------------------------
    

Forward Looking Information

Certain information included in this Press Release is forward-looking, within the meaning of applicable Canadian securities laws. Much of this information can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words. Superior believes the expectations reflected in such forward-looking information 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.

Forward-looking information is based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Forward looking information contained in this press release is made as of the date hereof and is subject to change. The Corporation assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law.

For further information: about Superior Plus, please visit our website at: www.superiorplus.com or contact: Wayne Bingham, Executive Vice-President and Chief Financial Officer, Tel: [phone], Fax: [phone], E-mail: [email protected] or Jay Bachman, Vice-President, Investor Relations and Planning, Tel: [phone], Fax: [phone], E-mail: [email protected], Toll Free: 1-866-490-PLUS (7587)