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

Chemtrade's troublesome Credit Facility

[Kherson]

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

[Dementedaccount]

put your money where your mouth is biatch...show us your short position troll...LMAOF!!!!  

[PlutusofCrete]

If Kherson had a short position...he would have made plenty of money by now.....he's been posting stuff like this since CHE was above $12.  Why is everyone on this Board out of control? I plan on selling this piece of garbage stock before Q1 results. See you guys again when we're below $5.....Rook and Bhardwaj are sailing the ship to the bottom of the ocean. 

[Red_Deer]

Kherson__AS USUAL Your Conclusions ARE Sheer Speculation eh !!!!!!! Nothing stating that the Creditors REQUIRED Pay Down of their Facility Ever consider that Management simply WANTED to Pay some Down eh ??? And Nothing stating that their Credit Facility is NOW in Question Which Credit Rating Agency has stated THIS eh ????

[Kherson]

Red_Deer, my point about the NR concerning use of monies from the recent equity raise is this; ask yourself what is not covered in the Marketing Materials concerning future draws on the Credit Facility! If we are to believe the information in the NR, Chemtrade will now only be drawing on the Facility for organic growth opportunities and the hydrogen by-product addition only! Therefore, if

[leo101]

hey red, che.un issued $70 mil in new units to primarily pay down some 5.25% debt. the units will cost about 9% to cover  the distribution. (8.2% on the gross proceeds so 9% is an estimate based on what the net proceeds will be.) so they are replacing 5.25% debt with equity that will cost 9% to service. now take taxes into consideration, the 5.25% debt is tax deductible wheres as the 9

[Red_Deer]

Hey LEO__what I had replied to was Kherson suggesting that the Creditors have REQUIRED pay down of their Credit Facility__and also that their Credit Facility is now in Trouble """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