TORONTO, July 31,
2024 /CNW/ - Chemtrade Logistics Income Fund
(TSX: CHE.UN) ("Chemtrade" or the "Fund") today
announced the results of its previously announced substantial
issuer bid (the "Offer") to purchase for cancellation up to
all of its issued and outstanding 8.50% Convertible Unsecured
Subordinated Debentures due September 30,
2025 (the "Debentures") (CUSIP No. 16387PAK9).
The Offer expired in accordance with its terms at 5:00 p.m. Eastern time on July 31, 2024. Based on the final count by
Computershare Investor Services Inc., the depositary for the Offer
(the "Depositary"), a total of $28,288,000 aggregate principal amount of
Debentures were properly tendered to the Offer and not
withdrawn.
In accordance with the terms and conditions of the Offer, the
Fund will be taking up $28,288,000
aggregate principal amount of Debentures for total consideration of
$37,615,311.04 representing a
purchase price of $1,300 per
$1,000 principal amount of
Debentures, plus all accrued and unpaid interest thereon to but
excluding the payment date as required by applicable securities
laws and as set out in the offer to purchase and accompanying
issuer bid circular dated June 25,
2024, as well as the related letter of transmittal. The
principal amount of Debentures purchased pursuant to the Offer
represents approximately 33.12% of the outstanding aggregate
principal amount of Debentures as of the date hereof and, after
giving effect to the purchase of such Debentures for cancellation,
approximately $57,115,000 aggregate
principal amount of Debentures will remain outstanding.
The Fund will make payment for the Debentures tendered and
accepted for purchase by tendering the aggregate purchase price to
the Depositary in accordance with the Offer and applicable laws and
payment to the debentureholders will be effected by the Depositary
as soon as practicable. Payment for the Debentures will be made in
cash. Any Debentures invalidly tendered or tendered and not
purchased will be returned to the tendering debentureholder
promptly by the Depositary.
As previously announced, Chemtrade intends to exercise its early
redemption rights by providing a formal notice of redemption to the
holders of the remaining Debentures in the latter half of
August 2024 in accordance with the
terms of the trust indenture governing the Debentures, at a price
of $1,000 per Debenture plus accrued
and unpaid interest.
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 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, chlor-alkali
products, 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 statements within the meaning of certain securities
laws, including the Securities Act (Ontario). Forward-looking statements 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 statements in this news
release include statements relating to the expected timing for the
take up and payment for the Debentures; the ability of Chemtrade to
complete the transactions described herein; and Chemtrade's
intentions to exercise its early redemption rights to redeem the
remaining Debentures.
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 the Fund and its
subsidiaries.
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 statements 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.sedarplus.ca.
SOURCE Chemtrade Logistics Income Fund
