/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
TORONTO, Oct. 1, 2019 /CNW/ - Chemtrade Logistics Income
Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund")
announced today that it has completed its previously-announced
public offering of $100 million
principal amount of 6.50% convertible unsecured subordinated
debentures (the "Debentures") due October 31, 2026. The Debentures are convertible,
at the option of the holder, into trust units of Chemtrade at a
conversion price of $15.80 per unit.
The Debentures were sold to a syndicate of underwriters led by BMO
Capital Markets on a bought deal basis. In addition, Chemtrade has
granted the underwriters an over-allotment option to purchase up to
an additional $15 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 will use the net proceeds of the offering to pay down
senior debt under the Fund's existing credit agreement with the
intention of drawing on it to redeem all of the outstanding
Chemtrade Electrochem 6.50% convertible unsecured series VI
debentures due December 31,
2021 and for general trust purposes.
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 press 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, potassium chloride, 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. Forward-looking
statements in this news release describe the expectations of the
Fund and its subsidiaries as of the date hereof. These statements
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 the Fund and its
subsidiaries, whether due to labour disruptions, supply
disruptions, power disruptions, transportation disruptions, damage
to equipment or otherwise; 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 Chemtrade Logistics Income Fund with the securities
regulatory authorities, available at www.sedar.com.
SOURCE Chemtrade Logistics Income Fund