Chemtrade Logistics Income Fund Announces $70 Million Bought Deal Equity Offering

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO, March 03, 2021 (GLOBE NEWSWIRE) -- Chemtrade Logistics Income Fund (“Chemtrade” or the “Fund”) (TSX: CHE.UN) announced today that it has entered into an agreement to sell 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. (collectively, the “Underwriters”), on a bought deal basis, 9,800,000 trust units (the “Trust Units”), at a price of $7.15 per Trust Unit (the “Offering Price”) for gross proceeds of approximately $70 million (the “Offering”). The Fund has also granted the Underwriters the option to purchase up to $10.5 million of additional Trust Units at the Offering Price to cover over-allotments, exercisable in whole or in part any time up to 30 days following closing of the Offering.

The net proceeds from the Offering are intended to be used to repay outstanding indebtedness under the Fund’s existing credit facility and for general trust purposes. The Fund expects to draw on its credit facility in connection with future organic growth opportunities, particularly in ultra-pure sulphuric acid and water chemical products and the monetization of by-product hydrogen in the electrochemicals segment.

The completion of the Offering is subject to normal regulatory approvals, including approval of the TSX, and is expected to close on or about March 10, 2021.

The Trust Units will be offered in all of the provinces and territories of Canada by way of a shelf prospectus supplement to the Base Shelf Prospectus 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 press 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.