Cdn. Yield: Corps, Trusts, GICs, Pref. Shares - Chemtrade Logistics Income Fund Announces $120 Million Convertible Debenture Bought Deal Financing - Cdn. Yield: Corps, Trusts, GICs, Pref. Shares - InvestorVillage


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Msg  110979 of 111232  at  12/6/2021 4:06:08 PM  by

badnewstuna


Chemtrade Logistics Income Fund Announces $120 Million Convertible Debenture Bought Deal Financing

Closed the day at $7.39
 
 
 

TORONTO , Dec. 6, 2021 /CNW/ - Chemtrade Logistics Income Fund ("Chemtrade" or the "Fund") (TSX: CHE.UN) announced today a public offering (the "Offering"), on a "bought deal" basis, of $120 million principal amount of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 6.25% per annum, payable semi-annually in arrears on the last day of February and August commencing on August 31, 2022 (the "Debentures"). The Debentures will mature on August 31, 2027 .

Chemtrade intends to redeem (the "Redemption") all of its 5.00% convertible unsecured subordinated debentures due August 31, 2023 (the "2023 Debentures"), no later than January 31, 2022 . The 2023 Debentures are redeemable prior to maturity at the option of the Fund for an amount equal to $1,000 for each $1,000 principal amount of the 2023 Debentures plus accrued and unpaid interest up to but excluding the redemption date. Chemtrade intends to provide a formal notice of redemption to the holders of the 2023 Debentures in accordance with the terms and conditions of the trust indenture governing the 2023 Debentures, which will set out the price at which the 2023 Debentures shall be redeemed as well as the redemption date. As of the close of trading on December 3, 2021 , the aggregate principal amount of the 2023 Debentures outstanding was $143.75 million .

The net proceeds of the Offering, together with borrowings of up to $30 million from the Fund's existing credit agreement (the "Credit Facility"), are intended to be used to fund the Redemption of the 2023 Debentures and, pending any such use, will be used to repay indebtedness under the Credit Facility.

The Offering is being made through a syndicate of underwriters led by RBC Capital Markets, National Bank Financial Inc., BMO Capital Markets, CIBC Capital Markets, Scotiabank, and TD Securities Inc.

The Fund has also granted the underwriters the option to purchase up to $18 million principal amount of additional Debentures at a price of $1,000 per Debenture to cover over-allotments, exercisable in whole or in part any time up to 30 days following closing of the Offering.

The Debentures will be convertible at the holder's option into fully paid and non-assessable freely tradeable Units at a conversion price of $10.00 per Unit (the "Conversion Price"). The Debentures will not be redeemable before August 31, 2025 . On or after August 31, 2025 and prior to August 31, 2026 , 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 August 31, 2026 , 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.

The completion of the Offering is subject to normal regulatory approvals, including approval of the TSX, and is expected to close on or about December 15, 2021 .

The Debentures will be offered in all of the provinces and territories of Canada by way of a shelf prospectus supplement to the Fund's base shelf prospectus dated July 10, 2020 and may also be offered to qualified institutional buyers pursuant to Rule 144A in the United States .

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 news 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.

 


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Replies
Msg # Subject Author Recs Date Posted
110980 Re: Chemtrade Logistics Income Fund Announces $120 Million Convertible Debenture Bought Deal Financing The Red 0 12/7/2021 10:27:01 AM
110985 Re: Chemtrade Logistics Income Fund Announces $120 Million Convertible Debenture Bought Deal Financing freeagent 1 12/7/2021 1:42:20 PM


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