TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN) (“Chemtrade” or the “Fund”) today provides a reminder of its offer to purchase for cancellation up to all of its issued and outstanding 8.50% Convertible Unsecured Subordinated Debentures due September 30, 2025 (the “Debentures”) (CUSIP No. 16387PAK9) (the “Offer”).
The Offer will expire tomorrow, Wednesday July 31, 2024 at 5:00pm Eastern Time.
The purchase price under the Offer is $1,300 in cash per $1,000 principal amount of Debentures (the “Purchase Price”). In addition, holders of Debentures (each, a “Debentureholder”) who tender and do not withdraw their Debentures under the Offer will receive a cash payment in respect of all accrued and unpaid interest on such Debentures up to, but excluding, the date they are taken up by the Fund pursuant to the Offer. The Offer is not conditional upon a minimum number of Debentures tendered.
To the extent that any Debentures remain outstanding following the expiry of the Offer, Chemtrade intends to exercise its early redemption rights by providing a formal notice of redemption to the holders of the Debentures in the latter half of August 2024 in accordance with the terms of the trust indenture governing the Debentures, at a price of $1,000 per Debenture plus accrued and unpaid interest.
Details of the Offer, including instructions for tendering Debentures to the Offer and the factors considered by the Board of Trustees in making its decision to approve the Offer, are described in the Fund’s press release dated June 20, 2024 and in the formal offer to purchase and issuer bid circular and other related documents (the “Offer Documents”), which have been filed with applicable Canadian Securities Administrators under Chemtrade’s profile on SEDAR+ at www.sedarplus.ca and on Chemtrade’s website at www.chemtradelogistics.com.
Debentureholders should carefully read the Offer Documents prior to making a decision with respect to the Offer. The Offer is not conditional upon a minimum number of Debentures tendered but will be subject to various other conditions that are typical for a transaction of this nature.
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 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, chlor-alkali products, 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 statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements 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 statements in this news release include statements relating to the Offer and the terms thereof, including the maximum principal amount of Debentures that Chemtrade may purchase under the Offer; the expiration time and expected timing for the take up and payment for the Debentures; any exercise by Chemtrade of its redemption rights to redeem any remaining Debentures and the timing thereof; and the ability of Chemtrade to complete the transactions described herein.
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 the Fund and its subsidiaries.
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 statements 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.sedarplus.ca.
