RE:Any ideas as to why ....Here are the DETAILS of the 8.5% Convertible Debentures. Chemtrade Logistics Income Fund Announces Increase to Previously Announced Convertible Debenture Bought Deal Financing to $75 Million
Toronto, Ontario – (August 20, 2020) — Chemtrade Logistics Income Fund (“Chemtrade” or the “Fund”) (TSX: CHE.UN) announced today that, due to strong demand, the Fund has increased the size of the previously announced bought deal offering (the “Offering) to $75 million of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 8.50% per annum, payable semi-annually on the last day of March and September commencing on March 31, 2021 (the “Debentures”). The Debentures will mature on September 30, 2025.
The Debentures will be convertible at the holder’s option into fully paid and non-assessable freely tradeable Units at a conversion price of $7.35 per Unit (the “Conversion Price”). The Debentures will not be redeemable before September 30, 2023. On or after September 30, 2023 and prior to September 30, 2024, 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 September 30, 2024, 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.