Chemtrade Logistics Income Fund Completes $86.5 Million Bought Deal Equity Offering
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO, August 22, 2022 – Chemtrade Logistics Income Fund (TSX: CHE.UN) (“Chemtrade” or the “Fund”) announced today that it has completed its previously-announced public offering of trust units (“Trust Units”) at a price of $8.65 per Trust Unit. The underwriters elected to exercise the over-allotment option in full, resulting in a total of 10,005,000 Trust Units being issued today for gross proceeds of approximately $86.5 million (the “Offering”). The Trust Units were sold to a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets, and which included CIBC Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc. and Desjardins Securities Inc. (collectively, the “Underwriters”), on a bought deal basis.
Chemtrade intends to use the net proceeds from the Offering to partially finance Chemtrade’s previously announced ultrapure sulphuric acid growth projects to expand capacity at its existing Ohio plant and to build a new plant in Arizona. Pending any such use, the net proceeds from the Offering will temporarily be used to reduce indebtedness under the Fund’s existing credit agreement. Chemtrade believes that additional capacity for ultrapure sulphuric acid is required to support the fast-growing semiconductor industry in the United States.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, 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.
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 also the largest supplier of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, 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 regarding the Fund’s ultrapure sulphuric acid plants and the Fund’s expected use of the net proceeds of the Offering, including the Fund’s intention to finance its ultrapure sulphuric acid growth projects in Ohio and Arizona. 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. 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: there being no significant disruptions affecting the operations of Chemtrade and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the ability of Chemtrade to sell products at prices consistent with current levels or in line with Chemtrade’s expectations; the ability of Chemtrade to obtain products, raw materials, equipment, transportation, services and supplies in a timely manner to carry out its activities and at prices consistent with current levels or in line with Chemtrade’s expectations; the timely receipt of required regulatory approvals; the cost of regulatory and environmental compliance being consistent with current levels or in line with Chemtrade’s expectations; the ability of Chemtrade to successfully access tax losses and tax attributes; the ability of Chemtrade to obtain financing on acceptable terms; and the performance of the global economy as expected.
Actual events and results can be substantially different from what is expected or implied by the forward-looking information as a result of risks, uncertainties and other factors, including without limitation, the factors detailed under the “Risk Factors” section of the Fund’s latest Annual Information Form and the “Risks and Uncertainties” sections of the Fund’s most recent Management’s Discussion and Analysis. These risks and uncertainties include, but are not limited to: regulatory changes; economic, geopolitical and other conditions affecting commercial activity; and risks related to the continued adverse impacts of the COVID-19 pandemic.
All forward-looking information in this release speaks as of the date of this press release. 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 statements 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.
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For further information:
Chief Financial Officer
Tel: (416) 496-4177
Business Development Manager
Tel: (973) 515-1831