In addition to Superior's significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of Superior's significant business risks.
Liquidity and Capital Resources
Superior's revolving syndicated bank facility (Credit Facility), term loans and finance lease obligations (collectively Borrowing) before deferred financing fees totaled $518.6 million as at March 31, 2013, a decrease of $121.0 million from December 31, 2012. The decrease in Borrowing was primarily due to the equity offering that Superior closed on March 27, 2013 for net proceeds of $137.8 million offset in part by the seasonal increase in net working capital funding requirements and the $50.0 million debenture redemption (see Redemptions below) on January 3, 2013.
On March 28, 2012, Superior completed an extension of its Credit Facility with eight lenders and reduced the size of the facility from $615 million to $570 million. The Credit Facility matures on June 27, 2015 and can be expanded to $750 million. The Credit Facility was reduced to reflect Superior's anticipated credit requirements as a result of Superior's ongoing debt reduction plan. Financial covenant ratios were unchanged with consolidated secured debt to consolidated EBITDA ratio and a consolidated debt to consolidated EBITDA ratio of 3.0x and 5.0x, respectively. See "Summary of Cash Flow" for details on Superior's sources and uses of cash.
As at March 31, 2013, Debentures (before deferred issue costs) issued by Superior totaled $541.5 million which was $49.9 million lower than the balance as at December 31, 2012 due to the redemption of the 5.75% convertible unsecured subordinated debentures during the third quarter, see Redemptions below for further details. See Note 11 to the unaudited condensed consolidated financial statements for additional details on Superior's Debentures.
On January 3, 2013, Superior completed the previously announced redemption of $50.0 million principal amount of its previously issued 5.85% convertible subordinated debentures due October 31, 2015. Superior used funds from its Credit Facility to fund the redemption of the 2015 Debentures. The debentures were redeemed, at the redemption price of $1,000 in cash per $1,000 principal amount of 2015 Debentures plus accrued and unpaid interest up to but excluding the redemption date.
On April 9, 2013, Superior redeemed the remaining $25.0 million principal amount of its 5.85% convertible unsecured subordinated debentures ("5.85% Debentures") due October 31, 2015 in accordance with the indenture governing such debentures. The 5.85% Debentures were redeemed at the redemption price (the "Redemption Price") which is equal to the outstanding principal amount of 5.85% Debentures to be redeemed, together with all accrued and unpaid interest thereon up to the Redemption Date, being $1,025.6438 per $1,000 principal amount of 5.85% Debentures.
As at March 31, 2013, approximately $338.8 million was available under the Credit Facility which Superior considers sufficient to meet its expected net working capital, capital expenditure and refinancing requirements.
Consolidated net working capital was $280.5 million as at March 31, 2013, a decrease of $7.3 million from net working capital of $287.8 million as at December 31, 2012. The decrease was primarily due to a reduction in inventory within the Energy Services segment as a result of heating season customer demand. Higher net working capital at Specialty Chemicals was due to reduced cash collections and lower accruals. Corporate related net working capital requirements decreased due to semi-annual interest accruals on convertible debenture obligations. Superior's net working capital requirements are financed from revolving term bank credit facilities.
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