Chemtrade Logistics greenshoe ups 5% convertibles to C$143.75 million

New York, Sept. 2 – Chemtrade Logistics Income Fund said the underwriters of its offering of 5% convertible unsecured subordinated debentures due 2023 exercised the C$18.75 million greenshoe in full, raising the size of the deal to C$143.75 million.

Chemtrade originally priced C$125 million of the convertibles on Aug. 15 at par of C$1,000.

The conversion price is C$24.85 per unit, equivalent to an initial conversion premium of 40%.

Chemtrade may call the debentures starting on Aug. 31, 2019 at par subject to a 125% stock price hurdle.

Beginning Aug. 31, 2021 the securities become freely callable at par. The maturity date is Aug. 31, 2023.

BMO Capital Markets and Scotiabank were the lead managers for the bought deal sale.

Proceeds will be used to repay credit facility debt and for general trust purposes.

Chemtrade is a Toronto-based operator of diversified businesses providing industrial chemicals and services.

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