Superior Announces Redemption of Outstanding Series 2 8% Debentures



    TSX:SPF.UN

    CALGARY, Oct. 2 /CNW/ - Superior Plus Income Fund (the "Fund") announced
today that it will redeem all the outstanding series 2 8% extendible
convertible unsecured subordinated debentures (the "Debentures") due
November 1, 2008 in accordance with the indentures governing the Debentures.
The Debentures will be redeemed on November 5, 2007 (the "Redemption Date") at
the redemption price (the "Redemption Price") which is equal to the
outstanding principal amount of the Debentures to be redeemed, together with
all accrued and unpaid interest thereon up to the Redemption Date, being
$1,000.8768 per $1,000 principal amount of Debentures. The Debentures will
cease to bear interest from and after the Redemption Date.
    Pursuant to the terms of the indentures governing the Debentures,
Debentureholders have the right until the last business day prior to the
Redemption Date to convert their Debentures into trust units. Debentureholders
who exercise this right and tender Debentures for conversion will receive
approximately 50 trust units per $1,000 principal amount of Debentures.
    The aggregate amount of outstanding Debentures as of the date hereof is
$58,943,000.
    On the Redemption Date, the Redemption Price of each Debenture to be
redeemed will become due and payable, the interest upon the principal amount
of such Debenture shall cease to be payable from and after such date and the
Debentures will be delisted from the Toronto Stock Exchange. The Redemption
Price shall be paid by the Fund on November 5, 2007 on presentation and
surrender of the Debentures at Computershare Trust Company of Canada's office
at Suite 710, 530-8th Avenue SW, Calgary , Alberta, T2P 3S8.
    The refinancing of the Debentures with Superior's $565 million syndicated
credit facility will provide significant interest cost and standby fee savings
relative to the fixed 8 percent coupon rate. The redemption of the Debentures
allows Superior to rebalance its debt portfolio to 43 percent floating and
57 percent fixed consistent with its risk management guidelines. Superior is
projected to have greater than $450 million in credit capacity available at
the end of 2007, which includes its securitization program at an average
utilization of $100 million.

    About Superior Plus and the Fund
    --------------------------------
    Superior Plus Income Fund is a diversified business trust. The Fund holds
100% of Superior Plus LP, a limited partnership formed between Superior Plus
Inc., as general partner and the Fund as limited partner. Superior Plus is
focused on stability of distributions with value growth and has four Canadian
based operating divisions: Superior Propane is Canada's largest distributor of
propane, related products and services; ERCO Worldwide is a leading supplier
of chemicals and technology to the pulp and paper industries and a regional
Midwest supplier of chloralkali and potassium products; Winroc is the seventh
largest distributor of walls and ceilings construction products in North
America; and Superior Energy Management provides fixed price natural gas and
electricity supply services in Ontario and natural gas supply in British
Columbia and Quebec.
    The Fund's trust units and convertible debentures trade on the Toronto
Stock Exchange as follows

    
    Trading Symbol  Security                   Issued and Outstanding
    -------------------------------------------------------------------------
    SPF.un          Trust Units                86.9 million
    SPF.db.a        8% Debentures, Series 2    $58.9 million principal amount
    SPF.db.b        5.75% Debentures, Series 1 $174.9 million principal
                                               amount
    SPF.db.c        5.85% Debentures, Series 1 $75.0 million principal
                                               amount
    -------------------------------------------------------------------------
    




For further information:

For further information: about Superior Plus, please visit our website
at: www.superiorplus.com or contact: A. Scott Daniel, Vice-President,
Treasurer and Investor Relations, Tel: (403) 218-2953, Fax: (403) 218-2973,
E-mail: sdaniel@superiorplus.com, Toll Free: 1-866-490-PLUS (7587); or with
respect to DRIP inquiries, Leanne Likness, Corporate Secretary, Tel: (403)
218-2954, Fax: (403) 218-2973, E-mail: llikness@superiorplus.com

Organization Profile

SUPERIOR PLUS CORP.

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