Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

Alternate Symbol(s): T.CHE.DB.F | T.CHE.DB.G | CGIFF | T.CHE.DB.H | T.CHE.UN

Chemicals Basic Materials

Chemtrade Logistics Income Fund is a Canada-based company that operates a diversified business providing industrial chemicals and services to customers in North America and around the world. The Company's segments include Sulphur and Water Chemicals (SWC), and Electrochemicals (EC). SWC segment markets, removes and/or produces merchant, Regen and sulphuric acid, sodium hydrosulphite, elemental sulphur, liquid sulphur dioxide, hydrogen sulphide, sodium bisulphite, and sulphides, and provides other processing services. This segment also manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate, and a number of specialty chemicals, including sodium nitrite. EC segment manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and HCl, largely for the pulp and paper, oil and gas and water treatment industries. These products are marketed primarily to North American and South American customers.

TSX:CHE.DB.E - Post by User

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > 135% payout ratio

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Comment by Capharnaumon Oct 12, 2020 12:18pm

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Post# 31704306

RE:RE:135% payout ratio

He said this on Oct 8:

"135% payout ratio, not sustainable. But if business returns, as he thinks it will, payout ratio will go down to 62%. Real problem is balance sheet. Need to focus on asset sales. Has upside, but pretty risky. Better yield stories elsewhere."

Not entirely sure where he gets his 135% payout ratio though... probably doesn't know/calculate that with the cut distributions. Looking at the June 30 report, distributable cash was $0.75 for the first six months. At the current distributions, they would have paid $0.30 off that distributable cash (40%). The distributable cash for the first six months even covers the full $0.60 yearly distribution.

Otherwise, their balance sheet is indeed not good looking. That's why though the share price is this low. Definately an investment on the riskier side, as the new management may decide to cut the distribution further to fix the balance sheet.

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