RE:$120 Million Convertible Debenture Bought Deal Financing In the Past of COURSE Kherson WOULD BE ALL OVER THIS News__SPINNING the USUAL
""HOW BAD it IS"" eh
Looks like the Management Strategy is to LOCK IN @ Current Interest rates__ELIMINATING the REAL RISK of Much Higher INTEREST Rates coming__THE FED has Signalled HIGHER RATES are NEEDED to CURTAIL the Current Record High INFLATION Rates of Late
The CONVERTIBLE feature @ $10 for 4 Years SHOULD MAKE this a Rather ATTRACTIVE Offering indeed eh ??????__and IT IS OPEN to EVERYONE__Not Just the FUNDS
TORONTO, Dec. 6, 2021 /CNW/ - Chemtrade Logistics Income Fund ("Chemtrade" or the "Fund") (TSX: CHE.UN) announced today a public offering (the "Offering"), on a "bought deal" basis, of $120 million principal amount of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 6.25% per annum, payable semi-annually in arrears on the last day of February and August commencing on August 31, 2022 (the "Debentures"). The Debentures will mature on August 31, 2027.
Chemtrade intends to redeem (the "Redemption") all of its 5.00% convertible unsecured subordinated debentures due August 31, 2023 (the "2023 Debentures"), no later than January 31, 2022. The 2023 Debentures are redeemable prior to maturity at the option of the Fund for an amount equal to $1,000 for each $1,000 principal amount of the 2023 Debentures plus accrued and unpaid interest up to but excluding the redemption date. Chemtrade intends to provide a formal notice of redemption to the holders of the 2023 Debentures in accordance with the terms and conditions of the trust indenture governing the 2023 Debentures, which will set out the price at which the 2023 Debentures shall be redeemed as well as the redemption date. As of the close of trading on December 3, 2021, the aggregate principal amount of the 2023 Debentures outstanding was $143.75 million.
The net proceeds of the Offering, together with borrowings of up to $30 million from the Fund's existing credit agreement (the "Credit Facility"), are intended to be used to fund the Redemption of the 2023 Debentures and, pending any such use, will be used to repay indebtedness under the Credit Facility.
The Debentures will be convertible at the holder's option into fully paid and non-assessable freely tradeable Units at a conversion price of $10.00 per Unit (the "Conversion Price"). The Debentures will not be redeemable before August 31, 2025. On or after August 31, 2025 and prior to August 31, 2026, the Debentures may be redeemed in whole or in part from time to time at the option of the Fund at par plus accrued and unpaid interest, if any, to but excluding the date of redemption, provided that the volume weighted average trading price of the Units on the TSX for the 20 consecutive trading days ending five trading days preceding the date on which notice of redemption is given is not less than 125% of the Conversion Price. On or after August 31, 2026, the Debentures may be redeemed at the option of the Fund at any time at par plus accrued and unpaid interest, if any, to but excluding the date of redemption.