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TORONTO, Aug. 21, 2024 /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 $250 million principal amount of Senior Unsecured Notes due 2029 of the Company (the "Notes") pursuant to a private placement offering (the "Offering"), at a price of $1,000 per $1,000 principal amount of Notes, with an interest rate of 6.375% per annum, payable semi-annually in arrears on February 28 and August 28, commencing on February 28, 2025. The Notes will be guaranteed by the Fund and certain of its subsidiaries.

The net proceeds of the Offering are intended to be used to reduce indebtedness under the Company's credit agreement and for general corporate purposes.

"Over the last few years, Chemtrade has experienced substantial growth and a positive step-change in its business, resulting in robust cash flow generation and a strong balance sheet, and which has positioned us to successfully complete our inaugural offering of non-convertible debt in the Canadian debt capital markets," said Rohit Bhardwaj, Chemtrade's Chief Financial Officer. "Together with our previously announced substantial issuer bid and our recent notice of redemption for our outstanding 2025 debentures, this Offering reflects a further optimization of our capital structure as we move away from dilutive capital. This is a further step towards the execution of our long-term value creation strategies for unitholders. Once the 2025 debentures have been redeemed, we will have reduced the amount of convertible debentures outstanding by approximately 34% over the past two years."

The Offering is being made through a syndicate of underwriters led by National Bank Financial Markets and BMO Capital Markets.

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 August 28, 2024.

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 .

SOURCE Chemtrade Logistics Income Fund