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

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

Chemicals Basic Materials
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 > Any ideas as to why ....
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Post by CanSiamCypon Aug 19, 2024 1:30pm
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Post# 36186285

Any ideas as to why ....

Any ideas as to why ........ the unit price is sliding after announcing the debenture redemption?

https://money.tmx.com/quote/CHE.UN/news/8710537023566780/CHEMTRADE_LOGISTICS_INCOME_FUND_ANNOUNCES_REDEMPTION_OF_ITS_REMAINING_850_CONVERTIBLE_UNSECURED_SUBORDINATED_DEBENTURES_DUE_SEPTEMBER_30_2025

I am not very familiar with the workings of convertible debentures nor the specifics of this 8.50% CHE debenture .... however ... I assume that the unit price is within the conversion range for this debenture .... hence the company's desire to redeem them at par value (versus the 30% premium offered in the SIB last month) to forestall the conversion.

I get that a mass conversion of the debentures to units would dilute earning per unit, etc. .... however would't swapping an 8.5% debenture interest obligation for a 6.9% distribution (current) obligation make sense? Also, such a conversion would improve the companies debt to book value ratio.

What am I missing here? Any comments from those with greater insight?

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