Chemtrade completes C$86.5 million bought deal equity offering

On August 22, 2022, Chemtrade Logistics Income Fund ("Chemtrade") announced that it completed its previously announced public offering of trust units at a price of C$8.65 per unit. The underwriters elected to exercise the over-allotment option in full, resulting in a total of 10,005,000 units being issued for gross proceeds of approximately C$86.5 million.

The trust units were sold to a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets, and which included CIBC Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc. and Desjardins Securities Inc. (collectively, the "Underwriters"), on a bought deal basis.

Chemtrade intends to use the net proceeds from the offering to partially finance Chemtrade's previously announced ultrapure sulphuric acid growth projects to expand capacity at its existing Ohio plant and to build a new plant in Arizona. Pending any such use, the net proceeds will temporarily be used to reduce indebtedness under the Chemtrade's existing credit agreement.

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

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. It is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. It is also the largest supplier of high purity sulphuric acid for the semiconductor industry in North America.