Chemtrade Logistics Income Fund Announces Closing of Over-Allotment Option for Additional Proceeds of $11.25 Million in Connection with Recently Completed Offering of Convertible Debentures

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TORONTO, Sept. 1, 2020 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund") announced today that it has completed the issue and sale of an additional $11.25 million aggregate principal amount of 8.50% convertible unsecured subordinated debentures (the "Debentures") due September 30, 2025 at a price of $1,000 per Debenture. The Debentures were issued pursuant to the exercise in full of the over-allotment option granted to the syndicate of underwriters, led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotiabank, and TD Securities Inc., in connection with Chemtrade's recently completed public offering of $75.0 million aggregate principal amount of Debentures that closed on August 26, 2020. Together with the Debentures issued on August 26, 2020, Chemtrade has issued a total of $86.25 million aggregate principal amount of Debentures.

On August 26, 2020, Chemtrade also announced that it will redeem $100.0 million principal amount of its 5.25% convertible unsecured subordinated debentures due June 30, 2021 (the "2021 Debentures") on September 29, 2020 in accordance with the terms of the trust indenture, as amended and supplemented by supplemental indentures thereto, pursuant to which they were issued. Chemtrade will use the net proceeds from the issuance of Debentures pursuant to the exercise of the over-allotment option to fund future subsequent redemptions of the 2021 Debentures.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Chemtrade

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite, and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, potassium chloride, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.

Caution Regarding Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking information can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking information in this news release include statements respecting certain future expectations about the Fund's intended use of the proceeds from the issuance of Debentures pursuant to the exercise of the over-allotment option and the Fund's intentions regarding future subsequent redemptions of 2021 Debentures. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof.

These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "Risk Factors" section of the Fund's latest Annual Information Form and the "Risks and Uncertainties" section of the Fund's most recent Management's Discussion & Analysis.

Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: the timing and completion of the partial redemption of the 2021 Debentures; there being no significant disruptions affecting the operations of the Fund and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the timely receipt of required regulatory approvals; and global economic performance.

Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking information contained herein are expressly qualified in their entirety by this cautionary statement.

Further information can be found in the disclosure documents filed by the Fund with the securities regulatory authorities, available at www.sedar.com.

SOURCE Chemtrade Logistics Income Fund

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