Sherritt International Corporation CBCA Plan of Arrangement
|Areas||Banking and Finance Law, Corporate Restructuring|
Goodmans represented Sherritt as they completed a plan of arrangement to comprehensively refinance and restructure its debt financing arrangements. The transaction resulted in the reduction of Sherritt’s outstanding debt obligations by approximately $305 million, the extension of maturities in respect of its note obligations to 2026 and 2029, and no dilution to the Corporation’s common shares.
In connection with the plan of arrangement, Goodmans led the implementation of a revised financing structure through a series of debt transactions which included the entry into a new amended and restated first lien credit facility, the issuance of new second lien secured notes with certain unique repayment and reinvestment features, and the issuance of new junior unsecured PIK notes with a limited and tailored covenant pattern to allow existing noteholders to share in future value creation by the revamped business.