Bullboard - Stock Discussion Forum Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.UN

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

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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... see more

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TSX:CHE.DB.E - Post Discussion

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > Distributions

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Post by biketrader98 on Sep 20, 2023 5:45pm

Distributions

Can anyone explain why CHE hasn't increased the payout to unitholders? Paying out less than a quarter of their distributable cash is holding back the SP and total return to unitholders.

From their Q2 press release:

Distributable cash after maintenance capital expenditures(1) of $95.5 million, an increase of $69.5 million or 268% year-over-year, with a distribution Payout ratio(1) of 22% for the twelve months ended June 30, 2023.

Anyone understand the strategy here?

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Comment by Hundo22 on Sep 20, 2023 7:19pm

They aren't going to increase the distribution until they hit their debt ratio target. Which is imo the more responsible move.

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Comment by biketrader98 on Sep 22, 2023 12:49pm

Have they made their debt ratio public? Reviewing the financial statements and there's nothing pending until 2026...

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Comment by Tealeaf1 on Oct 28, 2023 2:33pm

Methinks they are keeping their powder dry to deal with high Interest rate debt and the Superior Appeal for which they have set aside a possioble $28 mn

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