Chemtrade starts offers for former Canexus bonds, calls one series

New York, April 7 – Chemtrade Electrochem Inc. and Chemtrade Logistics Income Fund announced change-of-control tender offers for four series of bonds issued by the former Canexus Corp. and said they will redeem one of the issues following completion of the offers.

The offers follow the completion of the acquisition of Canexus by 1993754 Alberta Ltd., a subsidiary of Chemtrade Logistics, on March 10.

Chemtrade Electrochem, formerly Canexus, is offering to buy its 5.75% convertible unsecured subordinated series IV debentures due Dec. 31, 2018 at 101% of par, its 6% convertible unsecured subordinated series V debentures due Dec. 31, 2020 at par, its 6.5% convertible unsecured subordinated series VI debentures due Dec. 31, 2021 at par and its 7 7/8% senior notes due 2023 at 101% of par.

Holders will also receive accrued interest up to but excluding the settlement date of May 10.

The offers end at 7 p.m. ET on May 8.

Any 5.75% convertibles remaining outstanding after the end of the offers will be redeemed on May 15.

Chemtrade said that it intends to remain a “debt-only” reporting issuer as long as there is more than a de minimis number of holders of any of the securities but it intends to delist the debentures from the Toronto Stock Exchange.

Chemtrade Electrochem is a producer of sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Chemtrade Logistics is a Calgary, Alta., supplier of industrial chemicals and services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.