Chemtrade Logistics Income Fund

Chemtrade Logistics Income Fund in its $75 million public offering

Client

Chemtrade Logistics Income Fund

Value

$75 million

Service

Capital Markets

Date Closed

September 2020

Lead Office

Toronto


 

On August 26, 2020, Chemtrade Logistics Income Fund (“Chemtrade”) completed its previously announced public offering of $75 million aggregate principal amount of 8.50% convertible unsecured subordinated debentures due September 30, 2025 (“2025 Debentures”). The 2025 Debentures were sold to a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotiabank and TD Securities Inc. on a bought deal basis. The proceeds from the offering will be used to fund the partial redemption of Chemtrade’s 5.25% convertible unsecured subordinated debentures due June 30, 2021 and pending any such use, will be used to repay indebtedness under Chemtrade’s existing credit agreement.

Additionally, on September 1, 2020, Chemtrade completed the issue and sale of an additional $11.25 million aggregate principal amount of 2025 Debentures, pursuant to the exercise of the over-allotment option granted to the syndicate of underwriters.

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.

Osler, Hoskin & Harcourt LLP advised Chemtrade with a team consisting of Mary Abbott, Jeremy Fraiberg, Amelia Miao and Jennifer Cao (Corporate) and David Davachi and James Chang (Taxation).


Team
Mary  Abbott
Key Contact

Mary Abbott

Partner, Corporate

Jeremy  Fraiberg

Jeremy Fraiberg

Partner, Corporate

Amelia  Miao

Amelia Miao

Associate, Corporate

Jennifer Cao

Jennifer Cao

Associate, Corporate

David Davachi

David Davachi

Partner, Taxation

James Chang

James Chang

Associate, Taxation