Business
Chemtrade Logistics Income Fund Announces $110 Million Convertible Debenture Bought Deal
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES ....
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\n UNITED STATES./\n\n\nTORONTO, May 20, 2014 /CNW/ - Chemtrade Logistics Income Fund\n (\"Chemtrade\" or the \"Fund\") (TSX: CHE.UN) announced today a public\n offering, on a \"bought deal\" basis, of $110 million principal amount of\n convertible unsecured subordinated debentures, at a price of $1,000 per\n debenture, with an interest rate of 5.25% per annum, payable\n semi-annually on the last day of June and December commencing on\n December 31, 2014 (the \"Debentures\"). The Debentures will mature on\n June 30, 2021.\n\n\nThe offering is being made through a syndicate of underwriters led by\n BMO Capital Markets and Scotiabank.\n\n\nThe Fund has also granted the underwriters the option to purchase up to\n $16.5 million principal amount of additional Debentures at a price of\n $1,000 per Debenture to cover over-allotments, exercisable in whole or\n in part any time up to 30 days following closing of the offering.\n\n\nThe Debentures will be convertible at the holder's option into fully\n paid and non-assessable freely tradeable units of the Fund at the\n option of the holder at a conversion price of $28.00 per unit. The\n Debentures will not be redeemable before June 30, 2017. On or after\n June 30, 2017 and prior to June 30, 2019, the Debentures may be\n redeemed in whole or in part from time to time at the option of the\n Fund at par plus accrued and unpaid interest, provided that the\n weighted average trading price of the units on the Toronto Stock\n Exchange for the 20 consecutive trading days ending five trading days\n preceding the date on which notice of redemption is given is not less\n than 125% of the Conversion Price.  On or after June 30, 2019, the\n Debentures may be redeemed at the option of the Fund at any time at par\n plus accrued and unpaid interest.\n\n\nThe net proceeds of the offering will be used to repay existing\n indebtedness and for general trust purposes.\n\n\nThe offering is subject to normal regulatory approvals, including\n approval of the Toronto Stock Exchange, and is expected to close on or\n about June 10, 2014.\n\n\nThe Debentures will be offered by way of a short form prospectus in all\n of the provinces and territories of Canada and may also be offered to\n qualified institutional buyers pursuant to Rule 1...