Chemtrade Logistics completes C$110 million offering of convertible debentures
On June 10, 2014, Chemtrade Logistics Income Fund (Chemtrade) completed its previously announced offering of C$110 million principal amount of 5.25% convertible unsecured subordinated debentures due June 30, 2021. The debentures are convertible, at the option of the holder, into trust units of Chemtrade at a conversion price of C$28.00 per unit.
The debentures, announced May 20, 2014, were sold to a syndicate of underwriters led by BMO Capital Markets and Scotia Capital Inc. on a bought deal basis. Chemtrade has granted the underwriters an over-allotment option to purchase up to an additional C$16.5 million aggregate principal amount of debentures at the same price, exercising in whole or in part at any time for a period of 30 days following closing of the offering.
Chemtrade will use the net proceeds of the offering to repay existing indebtedness under its credit facility.
Chemtrade operates a diversified business providing industrial chemicals and services to customers around the world and is one of North America's largest suppliers of sulphuric acid, coagulants for water treatment, liquid sulphur dioxide, sodium nitrite and sodium hydrosulphite.
Further information can be found on The Wall Street Journal's website.