Chemtrade Logistics Income Fund Announces Further Partial Redemption of Its 5.25% Convertible Unsecured Subordinated Debentures Due June 30, 2021
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TORONTO, Sept. 4, 2020 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund") announced today that it has given notice that it will redeem (the "October Redemption") on October 5, 2020 (the "Redemption Date") a further $12.5 million principal amount of its 5.25% convertible unsecured subordinated debentures due June 30, 2021 (the "2021 Debentures"), in accordance with the terms of the trust indenture, as amended and supplemented by supplemental indentures thereto (collectively, the "Indenture"), pursuant to which they were issued.
The record date for determining the holders whose 2021 Debentures are to be redeemed on the Redemption Date shall be September 25, 2020. The 2021 Debentures shall be redeemed on a pro rata basis to the nearest multiple of $1,000 in accordance with the principal amount of the 2021 Debentures registered in the name of each holder, or in such other manner as deemed equitable, subject to any applicable regulatory approvals.
On the Redemption Date, holders of the 2021 Debentures to be redeemed in connection with the October Redemption will receive approximately $1,013.9139 for each $1,000 principal amount of 2021 Debentures, being equal to $1,000, plus all accrued and unpaid interest thereon to but excluding the Redemption Date. The 2021 Debentures that are redeemed in connection with the October Redemption will cease to bear interest from and after the Redemption Date.
Formal notice of redemption has been delivered to the registered holder of the 2021 Debentures in accordance with the terms of the Indenture. The aggregate amount of 2021 Debentures outstanding as of the date hereof is $126.5 million. Chemtrade previously announced that it will redeem $100.0 million principal amount of the 2021 Debentures on September 29, 2020 (the "September Redemption"). Following completion of the September Redemption on September 29, 2020 and the October Redemption on the Redemption Date, $14.0 million aggregate principal amount of the 2021 Debentures will remain outstanding.
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, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite, and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, potassium chloride, and zinc oxide. 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 with respect to the September Redemption and the October Redemption, including expected timing and the redemption price for the 2021 Debentures to be redeemed thereof. 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: the timing and completion of the September Redemption and the October Redemption; there being no significant disruptions affecting the operations of the Fund and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the timely receipt of required regulatory approvals; 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.sedar.com.
SOURCE Chemtrade Logistics Income Fund
Mark Davis, President & Chief Executive Officer, Tel: (416) 496-4176; Rohit Bhardwaj, Vice-President, Finance & Chief Financial Officer, Tel: (416) 496-4177
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