Sherritt Announces Receipt of Minimum Tenders and Requisite Consents for Tender Offer and Solicitation of Consent for Senior Unsecured Debentures Due 2018 and 2020

TORONTO, ONTARIO--(Marketwired - Sept. 30, 2014) -

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Sherritt International Corporation ("Sherritt") (TSX:S) announced today the expiration of the early consideration period for the (i) tender offer to purchase for cash between $100 million and $150 million principal amount of Sherritt's outstanding 8.00% Senior Unsecured Debentures due November 15, 2018 (the "2018 Debentures") and between $200 million and $250 million principal amount of Sherritt's outstanding 7.50% Senior Unsecured Debentures due September 24, 2020 (the "2020 Debentures", and together with the 2018 Debentures, the "Debentures") and (ii) the solicitation of consents for proposed amendments to the indentures under which the Debentures were issued.

At the deadline for early consideration, 5:00 p.m. (eastern time) on September 29, 2014, Sherritt successfully received the requisite consents from more than 66 2/3% of the principal amount of each of the outstanding 2018 Debentures and 2020 Debentures to adopt the proposed amendments to the indentures. The proposed amendments to the indentures will amend and restate the indentures so that the covenants and certain other provisions of the Debentures will be the same as the previously announced proposed issue of 2022 notes.

Sherritt also announced that as at the deadline for early consideration, 5:00 p.m. (eastern time) on September 29, 2014, the principal amount of 2018 Debentures tendered to the offer was $296.7 million, which satisfies the minimum tender condition for the 2018 Debentures, and the principal amount of 2020 Debentures tendered to the offer was $377.3 million, which satisfies the minimum tender condition for the 2020 Debentures.

Sherritt also announced its intention to proceed with issuing up to $300 million principal amount of Senior Unsecured Notes due 2022 (the "2022 Notes") on a private placement basis. Subject to the completion of the offers, the solicitations of consent and the completion of the offering of the 2022 Notes, Sherritt intends to redeem the outstanding 7.75% Senior Unsecured Debentures due October 15, 2015 (the "2015 Debentures") using the proceeds from the sale of the 2022 Notes.