TORONTO, ONTARIO–(Marketwired – April 11, 2017) –
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Chemtrade Logistics Income Fund (“Chemtrade” or the “Fund”) (TSX:CHE.UN) announced today that it is issuing a notice of redemption to holders of its 5.75% convertible unsecured debentures due December 31, 2018 (the “5.75% Debentures”), representing a redemption in full of all of the currently outstanding 5.75% Debentures. The 5.75% Debentures will be redeemed on May 11, 2017 (the “Redemption Date”) at a total redemption price of $1,000 plus accrued and unpaid interest of $20.63699 up to but excluding the Redemption Date, both per $1,000 principal amount.
On or about May 2, 2017, Chemtrade’s offering of 4.75% convertible unsecured debentures for aggregate gross proceeds of $175,000,000 (the “Offering”) is expected to close. Chemtrade intends to use a portion of the net proceeds from the Offering to pay a portion of the redemption price and accrued and unpaid interest of the 5.75% Debentures outstanding on the Redemption Date. As at the close of trading on April 10, 2017, the aggregate principal amount of the 5.75% Debentures outstanding was $79,637,000.
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 respecting the Fund’s intention to redeem the 5.75% Debentures, the timing of the redemption and the timing of closing and anticipated use of proceeds from 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 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 the Fund 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 Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.
Mark Davis
President & CEO
(416) 496-4176
Chemtrade Logistics Income Fund
Rohit Bhardwaj
Vice President, Finance & CFO
(416) 496-4177
