CHEMTRADE LOGISTICS INCOME FUND ANNOUNCES RESULTS OF ITS SUBSTANTIAL ISSUER BID FOR ITS 8.50% CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES DUE SEPTEMBER 30, 2025

CNW Group

Wed, Jul 31, 2024, 7:08 PM 4 min read

TORONTO, July 31, 2024 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund") today announced the results of its previously announced substantial issuer bid (the "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 expired in accordance with its terms at 5:00 p.m. Eastern time on July 31, 2024. Based on the final count by Computershare Investor Services Inc., the depositary for the Offer (the "Depositary"), a total of $28,288,000 aggregate principal amount of Debentures were properly tendered to the Offer and not withdrawn.

In accordance with the terms and conditions of the Offer, the Fund will be taking up $28,288,000 aggregate principal amount of Debentures for total consideration of $37,615,311.04 representing a purchase price of $1,300 per $1,000 principal amount of Debentures, plus all accrued and unpaid interest thereon to but excluding the payment date as required by applicable securities laws and as set out in the offer to purchase and accompanying issuer bid circular dated June 25, 2024, as well as the related letter of transmittal. The principal amount of Debentures purchased pursuant to the Offer represents approximately 33.12% of the outstanding aggregate principal amount of Debentures as of the date hereof and, after giving effect to the purchase of such Debentures for cancellation, approximately $57,115,000 aggregate principal amount of Debentures will remain outstanding.

The Fund will make payment for the Debentures tendered and accepted for purchase by tendering the aggregate purchase price to the Depositary in accordance with the Offer and applicable laws and payment to the debentureholders will be effected by the Depositary as soon as practicable. Payment for the Debentures will be made in cash. Any Debentures invalidly tendered or tendered and not purchased will be returned to the tendering debentureholder promptly by the Depositary.

As previously announced, Chemtrade intends to exercise its early redemption rights by providing a formal notice of redemption to the holders of the remaining 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.

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 expected timing for the take up and payment for the Debentures; the ability of Chemtrade to complete the transactions described herein; and Chemtrade's intentions to exercise its early redemption rights to redeem the remaining Debentures.

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.

SOURCE Chemtrade Logistics Income Fund