Chemtrade Logistics completes C$400 million subscription receipt offering
On January 27, 2017, Chemtrade Logistics Income Fund (Chemtrade) completed its previously announced public offering of subscription receipts at a price of C$18.35 per receipt. The offering was undertaken on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets. On closing, Chemtrade issued 21.8 million subscription receipts, resulting in aggregate gross proceeds of approximately C$400 million.
The net proceeds of the offering will be used to partially fund Chemtrade's previously announced acquisition of Canexus Corporation ("Canexus") by way of a plan of arrangement, which is expected to close in the first quarter of 2017. The proceeds of the offering will be held by an escrow agent pending the fulfilment or waiver of all conditions precedent set out in the arrangement agreement.
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 Canada Newswire's website.