,,,,,,,,,,,,,PUBLIC Offering......CONVERTIBLE Debentures Chemtrade Logistics Income Fund Announces $100 Million Convertible Debenture Bought Deal Financing and Intention to Partially Redeem 4.75% Convertible Unsecured Debentures due May 31, 2024
T.CHE.UN
TORONTO, Feb. 27, 2023 (GLOBE NEWSWIRE) -- Chemtrade Logistics Income Fund (“Chemtrade” or the “Fund”) (TSX: CHE.UN) announced today a public offering (the “Offering”), on a “bought deal” basis, of $100 million principal amount of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 7.00% per annum, payable semi-annually in arrears on the last day of June and December commencing on June 30, 2023 (the “Debentures”). The Debentures will mature on June 30, 2028. The completion of the Offering is subject to normal regulatory approvals, including approval of the TSX, and is expected to close on or about March 8, 2023.
The Debentures will be convertible at the holder’s option into fully paid and non-assessable freely tradeable Units at a conversion price of $12.85 per Unit (the “Conversion Price”). The Debentures will not be redeemable before June 30, 2026. On or after June 30, 2026 and prior to June 30, 2027, 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 June 30, 2027, 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.