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

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

Chemicals Chemicals

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

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Comment by borne2runon Apr 11, 2019 2:49pm

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Post# 29614487

RE:RE:RE:RE:RE:RE:RE:RE:RE:Some Thoughts

In terms of the share price settling in the mid 7's and a dividend cut - who knows for sure - my point in my last post was that their distributable cash covers the dividend with some room to spare.

Then why does net debt increase every year if there is room to spare? Yes, the distribution is covered, as long we ignore the supposed "one-off expenses" - legal provisions one year, environmental provisions another year, maybe currency hedges in another year. There is always something. I suggest the bulls calculate net debt as of Dec 31st for each of the past five years. It isn't pretty and the EBITDA to debt ratio could be north of 5 in 2019, much too high for a commodity manufacturer.

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