/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
TORONTO, Dec. 15, 2021 /CNW/ - Chemtrade Logistics Income
Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund")
announced today that it has completed its previously-announced
public offering (the "Offering") of $120 million principal amount of 6.25%
convertible unsecured subordinated debentures (the
"Debentures") due August 31,
2027. The Debentures are convertible, at the option of the
holder, into trust units of Chemtrade at a conversion price of
$10.00 per unit. The Debentures were
sold to a syndicate of underwriters led by RBC Capital Markets,
National Bank Financial Inc., BMO Capital Markets, CIBC Capital
Markets, Scotiabank, and TD Securities Inc. on a bought deal basis.
In addition, Chemtrade has granted the underwriters an
over-allotment option to purchase up to an additional $18 million aggregate principal amount of
Debentures at the same price, which can be exercised in whole or in
part at any time for a period of 30 days following the closing of
the Offering.
Chemtrade also announced today that it will redeem on
January 25, 2022 (the "Redemption Date") all of its
5.00% convertible unsecured subordinated debentures due
August 31, 2023 (the "2023
Debentures") in accordance with the terms of the trust
indenture, as amended and supplemented by supplemental indentures
thereto (collectively, the "Indenture"), pursuant to which
they were issued. On the Redemption Date, holders of 2023
Debentures will receive approximately $1,020.1370 for each $1,000 principal amount of 2023 Debentures, being
equal to $1,000, plus all accrued and
unpaid interest thereon to but excluding the Redemption Date.
Formal notice of redemption is being delivered to the holders of
the 2023 Debentures today in accordance with the terms of the
Indenture. The aggregate amount of 2023 Debentures outstanding as
of the date hereof is $143.75
million.
Chemtrade will use the net proceeds of the Offering, together
with borrowings of up to $30 million
from the Fund's existing credit agreement (the "Credit
Facility"), to fund the redemption of the 2023 Debentures and,
pending any such use, the net proceeds will be used to repay
indebtedness under the Credit Facility.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy securities in
the United States, nor shall there
be any offer, solicitation or sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Chemtrade
Chemtrade operates a diversified business providing industrial
chemicals and services to customers in North America and around the world. Chemtrade
is one of North America's largest
suppliers of sulphuric acid, spent acid processing services,
inorganic coagulants for water treatment, sodium chlorate, sodium
nitrite, sodium hydrosulphite, and phosphorus pentasulphide.
Chemtrade is a leading regional supplier of sulphur, chlor-alkali
products, liquid sulphur dioxide and zinc oxide. Additionally,
Chemtrade provides industrial services such as processing
by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information within the meaning of certain
securities laws, including the Securities Act (Ontario). Forward-looking information can be
generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "expected", "intend", "may",
"will", "project", "plan", "should", "believe" and similar
expressions. Specifically, forward-looking information in this news
release include statements respecting certain future expectations
about the Fund's intended use of the proceeds, including the
redemption of 2023 Debentures and anticipated borrowings from the
Credit Facility to fund such redemption. Forward-looking statements
in this news release describe the expectations of the Fund and its
subsidiaries as of the date hereof.
These statements are based on assumptions and involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements for a variety of
reasons, including without limitation the risks and uncertainties
detailed under the "Risk Factors" section of the Fund's latest
Annual Information Form and the "Risks and Uncertainties" section
of the Fund's most recent Management's Discussion &
Analysis.
Although the Fund believes the expectations reflected in these
forward-looking statements and the assumptions upon which they are
based are reasonable, no assurance can be given that actual results
will be consistent with such forward-looking statements, and they
should not be unduly relied upon. With respect to the
forward-looking statements contained in this news release, the Fund
has made assumptions regarding: the timing and completion of the
redemption of the 2023 Debentures; there being no significant
disruptions affecting the operations of the Fund and its
subsidiaries; the timely receipt of required regulatory approvals;
and global economic performance.
Except as required by law, the Fund does not undertake to update
or revise any forward-looking statements, whether as a result of
new information, future events or for any other reason. The
forward-looking information contained herein are expressly
qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents
filed by the Fund with the securities regulatory authorities,
available at www.sedar.com.
SOURCE Chemtrade Logistics Income Fund
