Chemtrade Prices $250 Million Senior Unsecured Note Offer By Unit

07:07 AM EDT, 09/24/2025 (MT Newswires) -- Chemtrade Logistics Income Fund (CHE-UN.TO), which closed down but hit 52-week highs Tuesday, announced overnight that its unit, Chemtrade Logistics, priced a private placement offering of $250 million principal amount of Senior Unsecured Notes due 2032.

The company said the notes will be sold at $1,000 per $1,000 principal amount of notes, bearing interest at a fixed rate of 5.750% per annum, payable semi-annually in arrears on April 1 and October 1, starting on April 1, 2026. It added that the notes will be guaranteed by the fund and certain of its units.

Proceeds of the offering, expected to close on or about Oct. 1, will be used to repay indebtedness and for general corporate needs.

"We recently announced a series of transactions to reduce our exposure to dilutive capital, including a redemption and substantial issuer bid for our outstanding 2027 convertible debentures and a substantial issuer bid for our outstanding 2028 convertible debentures," said Chemtrade chief financial officer Rohit Bhardwaj. "Those transactions are intended to minimize conversions that may dilute our unitholders."

"This offering is another step in furtherance of our capital optimization strategy and maturing our balance sheet by introducing long-tenor non-dilutive debt," added Bhardwaj.

Shares of the company closed down 1% to $13.3 on the Toronto Stock Exchange Tuesday.

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