Chemtrade Logistics closes C$345.2 million public offering of subscription receipts

On January 23, 2014, Chemtrade Logistics Income Fund (Chemtrade) announced that it completed its offering of 18.17 million subscription receipts for gross proceeds of C$345.2 million, inclusive of 2.37 million subscription receipts purchased by the underwriters upon the exercise in full of their over-allotment option. The offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters, co-led by BMO Capital Markets and Scotia Capital Inc.

As previously announced, Chemtrade intends to use the net proceeds of the offering to finance its acquisition of Parsippany, a New Jersey-based General Chemical Holding Company (General Chemical). Chemtrade's acquisition of General Chemical also closed on January 23, 2014 with a final total cash purchase price of approximately US$900 million.

Pursuant to the terms of the offering, upon the closing of the General Chemical acquisition the subscription receipts were exchanged on a one-for-one basis for units of Chemtrade without payment of additional consideration or further action, with the result that an aggregate of 18.17 million units of Chemtrade have now been issued. These units began trading on the TSX on January 23, 2014, and the subscription receipts will not trade.

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world.

Further information can be found on Chemtrade's website.