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

open at 9 tomorrow distribution will be increased

[uograd]

So several things here.  Quarter was a blowout of epic proportion with a payout ratio now of 20 per cent

the key though is that by confirming the significant increase in ebitda they are showing that the worry over the rail strike was overblown as it was settled in a day.  they may have a few one times costs but the impact in both q4 and then beyond will be negligible,

They have not mentioned where they are in sales process of vancouer port land so they will save that for the investor day on the 18th when they increase their distribution not back to .10 but probably to .06 or .07

all systems are green and firing on all cylinders.

[JosephM1]

Agreed, very miss priced company.  However there is the dilution that is going to happen via the convertible debentures at 7.35 and 10. Which will add 25 million shares. There is also conversion at 15.80 and 26.70, both seem out of the money for the foreseeable future. 

[CanSiamCyp]

Joseph: Thanks for the reminder re the converts. I was not aware that any had been issued with a $7.35 strike price ... in which case, they are already in the money. As I said to uograd, I think that CHE.un management should and hopefully will prioritize early redemption of their converts rather than raising the distribution at this time! Cheers to all long-term holders of CHE.un! It has been a

[CanSiamCyp]

uograd: Agree with all your points - except that I think it would be better to use free cash available to redeem some of their convertible bonds. This will have more impact on unit price moving forward than raising the distribution at this point in time ... by reducing the interest expense on the bonds and eliminating the dilution risk of the bonds converting as unit prices rise. First things