CHE.UN Chemtrade Logistics Income Fund

TORONTO, June 21, 2024 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund") today announced that, in connection with its previously announced normal course issuer bid ("NCIB") to purchase up to 11,672,524 of its units, it has entered into a new automatic securities purchase plan (the "ASPP") with its designated broker.

On June 20, 2024, Chemtrade announced its intention to commence a substantial issuer bid (the "Offer") pursuant to which the Fund will offer to purchase for cancellation up to all of its issued and outstanding 8.50% Convertible Unsecured Subordinated Debentures due September 30, 2025 (the "Debentures") (CUSIP No. 16387PAK9). The purchase price under the Offer is $1,300 in cash per $1,000 principal amount of Debentures (the "Purchase Price"). In addition, holders of Debentures (each, a "Debentureholder") who tender and do not withdraw their Debentures under the Offer will receive a cash payment in respect of all accrued and unpaid interest on such Debentures up to, but excluding, the date they are taken up by the Fund pursuant to the Offer. The Offer will expire at 5:00 p.m. Eastern time on July 31, 2024, unless extended, varied or terminated by the Fund. The Offer will not be conditional upon any minimum number of Debentures being tendered.

In connection with Chemtrade's announcement of its intention to commence the Offer, the automatic securities purchase plan that Chemtrade previously entered into with its designated broker in connection with the NCIB was automatically terminated in accordance with its terms. Chemtrade has entered into a new automatic securities purchase plan with its designated broker, that will allow for purchases of units during certain pre-determined blackout periods, subject to certain parameters as to price and number of units. The new automatic securities purchase plan will only be effective and purchases of units can only commence after the termination or expiry of the Offer. Outside of these pre-determined black-out periods, units will be purchased in accordance with management's discretion, subject to applicable law.

The ASPP constitutes an automatic plan for purposes of applicable Canadian securities legislation and has been pre-cleared by the Toronto Stock Exchange ("TSX").

Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking statements in this news release include statements relating to the Offer and the terms thereof, including the maximum principal amount of Debentures that Chemtrade may purchase under the Offer and the expiration time of the Offer; and statements respecting certain future expectations about the ASPP and any purchases of units thereunder.

Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "Risk Factors" section of the Fund's latest Annual Information Form and the "Risks and Uncertainties" section of the Fund's most recent Management's Discussion & Analysis.

Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: there being no significant disruptions affecting the operations of the Fund and its subsidiaries.

Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedarplus.com. 

SOURCE Chemtrade Logistics Income Fund