Superior Plus Announces 5.25% Senior Unsecured Note Financing and Redemption of 6.00% Convertible Unsecured Debentures due June 30, 2019

TORONTO, ONTARIO--(Marketwired - Oct. 12, 2017) - Superior Plus Corp. ("Superior") (TSX:SPB) is pleased to announce that its wholly-owned subsidiary Superior Plus LP ("Superior LP") has, pursuant to an underwriting agreement entered into today, agreed to issue and sell an additional CDN $150 million principal amount of its 5.25% Senior Unsecured Notes due February 27, 2024 (the "Notes") by way of private placement (the "Private Placement") under the indenture pursuant to which Superior LP previously issued CDN $250 million of Notes on February 27, 2017. The additional Notes will be issued at $1,015 per $1,000 principal amount and interest thereon will be payable semi-annually in arrears in equal instalments on February 27 and August 27 of each year with the first interest payment commencing on February 27, 2018. The additional Notes will form a single series with the previously issued Notes. The Private Placement is expected to close on or about October 16, 2017, subject to customary closing conditions.

The net proceeds from the issuance of the additional Notes will be used to fund the redemption of Superior's issued and outstanding 6.00% convertible unsecured subordinated debentures due June 30, 2019 (of which there is $97 million aggregate principal amount outstanding) (the "6.00% Debentures"), and to initially repay drawn amounts under Superior LP's syndicated revolving credit facility, which can be redrawn for general corporate purposes. The redemption of the 6.00% Debentures is being completed on November 15, 2017 (the "Redemption Date") in accordance with the terms of the indenture governing the 6.00% Debentures at a redemption price which is equal to the outstanding principal amount of the 6.00% Debentures to be redeemed, together with all accrued and unpaid interest thereon up to, but excluding, the Redemption Date, being $1,022.6849 per $1,000.00 principal amount of the 6.00% Debentures. The 6.00% Debentures that are redeemed will cease to bear interest from and after the Redemption Date.

Pursuant to the terms of the indenture governing the 6.00% Debentures, holders of the 6.00% Debentures have the right until the last business day prior to the Redemption Date to convert their 6.00% Debentures into common shares of Superior ("Common Shares") at a conversion price of $16.75, being a rate of 59.7015 Common Shares per $1,000 principal amount of 6.00% Debentures.