Superior Propane acquires Sterling Chemicals' pulp chemicals business

Date Closed: 12/19/2002

Value: US$375 million

On December 19, 2002, Superior Propane Inc. acquired the pulp chemicals business of Sterling Chemicals, Inc. for a purchase price of US$375 million. The deal was completed as part of Sterling Chemicals (and certain of its subsidiaries) emergence from Chapter 11 bankruptcy protection in the U.S. Superior Propane financed the acquisition by completing a public offering of extendible convertible unsecured subordinated debentures through an underwriting group led by Scotia Capital Inc., and by completing a bank financing with a syndicate of banks represented by The Bank of Nova Scotia.

In Canada, Sterling Chemicals was represented by BLG and in-house counsel Jane Boshart-McCleary, Kim Forwell and Ken Hale, Sterling Pulp Chemicals. The BLG team included Frank Callaghan and Howard Silverman (corporate/banking), Larissa Tkachenko (tax), Colin Simpson (corporate), Adam Fanaki (regulatory) and Evelyn Goldfarb (real estate), with Quebec issues being handled by Sylvie Bouvette and Vincent Frenette.