Sherritt International Corp. said Feb. 14 that it reduced its debts by C$121.2 million through a recently closed Dutch auction tender offer to purchase for cash debentures and notes due in 2021, 2023 and 2025.

The company was able to buy C$49.8 million of its 8% senior unsecured debentures due in 2021, C$44.1 million of its 7.5% senior unsecured debentures due in 2023 and C$27.3 million of its 7.875% senior unsecured notes due in 2025 for a total of C$110.3 million plus accrued interest.

"Through this process, we have reduced the principal amount outstanding of our notes by more than 15%," President and CEO David Pathe said in a statement. "This transaction saves the company approximately C$10 million annually in interest expense, and brings the total amount of indebtedness eliminated from our balance sheet over the past four years to more than C$2 billion."

Sherritt International announced the buyback in mid-January when it launched a C$100 million unit offering to fund the tender, intending to cut debt by C$75 million. The financing was later upsized to C$132 million with the full exercise of the overallotment option.

Following the closing of the tender offer, Sherritt International has outstanding C$170.2 million of its 8% debentures due 2021, C$205.9 million of its 7.5% debentures due 2023 and C$222.7 million of its 7.875% notes due 2025, for a total of C$598.8 million.

The company's assets include the Moa nickel mine in Cuba and the Ambatovy nickel mine in Madagascar, both joint ventures.