DBRS Finalizes BB (high) Rating with Stable Trend for $500 Million New Debt Issue of Sherritt International Corporation

DBRS has today finalized its rating of BB (high) with a Stable trend for $500 million of 7.5% senior unsecured debentures due September 24, 2020 (the New Senior Unsecured Notes), to be issued by Sherritt International Corporation (Sherritt or the Company) following the pricing of the New Senior Unsecured Notes and the filing of a prospectus supplement dated September 19, 2012, to the Company’s short-form base shelf prospectus dated August 24, 2012.

The offering of the New Senior Unsecured Notes is expected to close on or about September 24, 2012, subject to customary closing conditions.

Sherritt is expected to use a portion of the net proceeds from the sale of the New Senior Unsecured Notes to fund the redemption of all of the $225 million outstanding principal amount of Sherritt’s 8.25% Senior Unsecured Debentures Series B due October 24, 2014, including the applicable make-whole premium. The remainder of the funds raised is expected to be used for general corporate purposes, including supplementing Sherritt’s existing financial resources as it seeks to ramp up its 40%-owned Ambatovy project in Madagascar and to complete its other growth projects.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Mining Industry (June 2011), which can be found on our website under Methodologies.