TSX:CHE.DB.E - Post by User
Comment by
Dementedaccounton Mar 21, 2021 9:19pm
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Post# 32848161
RE:Chemtrade's troublesome Credit Facility
RE:Chemtrade's troublesome Credit Facility put your money where your mouth is biatch...show us your short position troll...LMAOF!!!!
Kherson wrote:
The following information was released on Feb.23 2021 on p.2 of the 2020 MD&A.
Receivables Purchase Facility During the fourth quarter of 2020,
Chemtrade entered into a factoring facility of up to $100.0 million (the "A/R Facility") with HSBC Bank Canada. The A/R Facility is an uncommitted receivables purchase facility for the purchase of eligible receivables owed to Chemtrade from trade debtors on an undisclosed basis with no recourse. Chemtrade used the proceeds received from the initial sale of trade receivables under the A/R Facility to pay down its revolving credit facility and to redeem the remaining outstanding amount of the Fund 2014 5.25% Debentures, as described above.
Then on March 3, 2021 Chemtrade releases the following information concerning their $70 million Bought Deal Equity Offering
The net proceeds from the Offering are intended to be used to repay outstanding indebtedness under the Fund’s existing credit facility and for general trust purposes. The Fund expects to draw on its credit facility in connection with future organic growth opportunities, particularly in ultra-pure sulphuric acid and water chemical products and the monetization of by-product hydrogen in the electrochemicals segment.
So the big question now is, why did Chemtrade's creditors require them to pay down their Credit Facility twice in 6 months?
How much longer can Chemtrade continue to pay a Distribution that they can no longer afford, especially when their Credit Facility is now in question?
Kherson