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TORONTO, Aug. 21,
2024 /CNW/ - Chemtrade Logistics Income Fund
(the "Fund") (TSX: CHE.UN) announced today that its
wholly-owned subsidiary, Chemtrade Logistics Inc. (the
"Company" and together with the Fund, "Chemtrade")
has entered into an underwriting agreement to sell $250 million principal amount of Senior Unsecured
Notes due 2029 of the Company (the "Notes") pursuant to a
private placement offering (the "Offering"), at a price of
$1,000 per $1,000 principal amount of Notes, with an
interest rate of 6.375% per annum, payable semi-annually in
arrears on February 28 and
August 28, commencing on February 28, 2025. The Notes will be guaranteed
by the Fund and certain of its subsidiaries.
The net proceeds of the Offering are intended to be used to
reduce indebtedness under the Company's credit agreement and for
general corporate purposes.
"Over the last few years, Chemtrade has experienced substantial
growth and a positive step-change in its business, resulting in
robust cash flow generation and a strong balance sheet, and which
has positioned us to successfully complete our inaugural offering
of non-convertible debt in the Canadian debt capital markets," said
Rohit Bhardwaj, Chemtrade's Chief
Financial Officer. "Together with our previously announced
substantial issuer bid and our recent notice of redemption for our
outstanding 2025 debentures, this Offering reflects a further
optimization of our capital structure as we move away from dilutive
capital. This is a further step towards the execution of our
long-term value creation strategies for unitholders. Once the 2025
debentures have been redeemed, we will have reduced the amount of
convertible debentures outstanding by approximately 34% over the
past two years."
The Offering is being made through a syndicate of underwriters
led by National Bank Financial Markets and BMO Capital Markets.
The Notes will be offered for sale in Canada on a private placement basis and may
also be offered to qualified institutional buyers pursuant to Rule
144A in the United States. 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.
Subject to customary closing conditions, the Offering is
expected to close on or about August 28,
2024.
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, regen acid processing services,
inorganic coagulants for water treatment, sodium chlorate, sodium
nitrite and sodium hydrosulphite. Chemtrade is also the largest
producer of high purity sulphuric acid for the semiconductor
industry in North America.
Chemtrade is a leading regional supplier of sulphur and
chlor-alkali products. 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 Company's ability to close
the Offering; the anticipated closing date of the Offering; and the
expected use of proceeds of the Offering. 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 there being no significant
disruptions affecting the operations of Chemtrade and its
subsidiaries 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.sedarplus.com.
SOURCE Chemtrade Logistics Income Fund
