/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
TORONTO, Jan. 13,
2025 /CNW/ - Chemtrade Logistics Income Fund
(the "Fund") (TSX: CHE.UN) announced today that its
wholly-owned subsidiary, Chemtrade Logistics Inc. (the
"Company" and together with the Fund, "Chemtrade")
has entered into an underwriting agreement to sell an additional
$125 million aggregate principal
amount of 6.375% Senior Unsecured Notes due 2029 of the Company
(the "Notes") pursuant to a private placement offering (the
"Offering"). The Notes will be issued at a price of
$1,002.50 per $1,000 principal amount of Notes (yield to call
of 6.294%), plus accrued interest from and including August 28, 2024. The Notes will have identical
terms (except for their date of issue and issuance price) as, and
form part of a single series with, the $250
million aggregate principal amount of 6.375% Senior
Unsecured Notes due 2029 issued by the Company on August 28, 2024, resulting in an aggregate of
$375 million principal amount of 6.375% Senior Unsecured Notes
due 2029 outstanding.
The net proceeds of the Offering are intended to be used to
reduce indebtedness and for general corporate purposes.
"Chemtrade sustained robust cash flow generation and a
strengthened balance sheet in the second half of 2024. Following
our inaugural senior note offering, this Offering provides
additional balance sheet flexibility and presents opportunities for
Chemtrade to further optimize our capital structure and reduce
outstanding convertible debt," said Rohit
Bhardwaj, Chemtrade's Chief Financial Officer.
The Offering is being made through a syndicate of underwriters
led by National Bank Financial Markets and BMO Capital Markets as
joint bookrunners.
The Notes will be offered for sale in Canada on a private placement basis and may
also be offered to qualified institutional buyers pursuant to Rule
144A in the United States. The
securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy securities in
the United States, nor shall there
be any offer, solicitation or sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
Subject to customary closing conditions, the Offering is
expected to close on or about January 16,
2025.
About Chemtrade
Chemtrade operates a diversified business providing industrial
chemicals and services to customers in North America and around the world. Chemtrade
is one of North America's largest
suppliers of sulphuric acid, regen acid processing services,
inorganic coagulants for water treatment, sodium chlorate, sodium
nitrite and sodium hydrosulphite. Chemtrade is also the largest
producer of high purity sulphuric acid for the semiconductor
industry in North America.
Chemtrade is a leading regional supplier of sulphur and
chlor-alkali products. Additionally, Chemtrade provides industrial
services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information within the meaning of certain
securities laws, including the Securities
Act (Ontario).
Forward-looking information can be generally identified by the use
of words such as "anticipate", "continue", "estimate", "expect",
"expected", "intend", "may", "will", "project", "plan", "should",
"believe" and similar expressions. Specifically, forward-looking
information in this news release include statements respecting
certain future expectations about: the Company's ability to close
the Offering; the anticipated closing date of the Offering; and the
expected use of proceeds of the Offering. Forward-looking
statements in this news release describe the expectations of the
Fund and its subsidiaries as of the date hereof. These statements
are based on assumptions and involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements for a variety of reasons, including
without limitation the risks and uncertainties detailed under the
"Risk Factors" section of the Fund's latest Annual Information Form
and the "Risks and Uncertainties" section of the Fund's most recent
Management's Discussion & Analysis.
Although the Fund believes the expectations reflected in these
forward-looking statements and the assumptions upon which they are
based are reasonable, no assurance can be given that actual results
will be consistent with such forward-looking statements, and they
should not be unduly relied upon. With respect to the
forward-looking statements contained in this news release, the Fund
has made assumptions regarding there being no significant
disruptions affecting the operations of Chemtrade and its
subsidiaries and global economic performance.
Except as required by law, the Fund does not undertake to update
or revise any forward-looking statements, whether as a result of
new information, future events or for any other reason. The
forward-looking information contained herein are expressly
qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents
filed by the Fund with the securities regulatory authorities,
available at www.sedarplus.com.
SOURCE Chemtrade Logistics Income Fund
