Chemtrade Logistics Income Fund completes convertible debenture bought deal financing

On March 8, 2023, Chemtrade Logistics Income Fund (“Chemtrade”) announced that it completed its previously announced bought deal public offering of C$100 million principal amount of convertible unsecured subordinated debentures, at a price of C$1,000 per debenture. Maturing on June 30, 2028, the debentures carry an interest rate of 7.00% per annum and are payable semi-annually in arrears on the last day of June and December commencing on June 30, 2023.

The offering was made through a syndicate of underwriters led by Scotiabank, TD Securities Inc. and BMO Capital Markets. Chemtrade also granted the underwriters the option to purchase up to C$15 million principal amount of additional debentures, at the offering price, to cover over-allotments. On March 20, 2023, Chemtrade announced the issue and sale of an additional $10 million aggregate principal amount of debentures under the over-allotment option, increasing the total amount of issued debentures to C$110 million.

The net proceeds will be used to fund the partial redemption of Chemtrade’s 4.75% convertible unsecured subordinated debentures due May 31, 2024, and for general trust purposes. Pending any such use, the net proceeds of the offering may temporarily be used to reduce indebtedness under the Chemtrade’s credit agreement or held in short term investments.

Further information can be found on Globe Newswire’s website.

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