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Chemtrade Announces Closing of the $400 Million Subscription Receipt Offering
Chemtrade Announces Closing of the $400 Million Subscription Receipt Offering Cana...
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\n\nChemtrade Announces Closing of the $400 Million Subscription Receipt Offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Jan. 27, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n(Note: All dollar amounts Canadian dollars unless otherwise noted)\n\n\n\nTORONTO, Jan. 27, 2017 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) (\"Chemtrade\" or the \"Fund\") announced today that it has completed its previously announced offering of subscription receipts (the \"Subscription Receipts\") (TSX: CHE.R) at a price of $18.35 per Subscription Receipt (the \"Offering\"). The Offering was undertaken on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets. On closing, Chemtrade issued 21.8 million Subscription Receipts, resulting in aggregate gross proceeds of approximately $400 million.\n\n\n \n \n\n \nAs previously announced, the net proceeds of the Offering will be used to partially fund Chemtrade's previously announced acquisition of Canexus Corporation (TSX: CUS) (\"Canexus\") by way of a plan of arrangement (the \"Arrangement\"). Subject to the satisfaction of all conditions precedent set out in the arrangement agreement between an indirect, wholly-owned subsidiary of Chemtrade, Chemtrade Logistics Inc. and Canexus, including the approval of Canexus shareholders and the receipt of all necessary regulatory approvals, the Arrangement is expected to close in the first quarter of 2017. The proceeds of the Offering will be held by an escrow agent pending the fulfilment or waiver of all such conditions precedent.  \n\nOn closing of the Arrangement, (i) one unit of the Fund will be automatically issued in exchange for each Subscription Receipt (subject to customary anti-dilution protection), without payment of additional consideration or further action by the holder thereof; and (ii) an amount per Subscription Receipt equal to the amount per unit of any cash distribution made by Chemtrade for which record dates have occurred ...