October 28, 2020

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Chemtrade Logistics Income Fund Announces Redemption of Its Remaining 5.25% Convertible Unsecured Subordinated Debentures Due June 30, 2021

Not for distribution to U.S. news wire services or dissemination in the United States

TORONTO–(BUSINESS WIRE)–Chemtrade Logistics Income Fund (TSX:CHE.UN) (“Chemtrade” or the “Fund”) announced today that it has given notice that it will redeem (the “Redemption”) on November 13, 2020 (the “Redemption Date”) all of its outstanding 5.25% convertible unsecured subordinated debentures due June 30, 2021 (the “2021 Debentures”), being $14 million aggregate principal amount, in accordance with the terms of the trust indenture, as amended and supplemented by supplemental indentures thereto (collectively, the “Indenture”) pursuant to which they were issued.

On the Redemption Date, holders of the 2021 Debentures to be redeemed in connection with the Redemption will receive approximately $1,019.5082 for each $1,000 principal amount of 2021 Debentures, being equal to $1,000, plus all accrued and unpaid interest thereon to but excluding the Redemption Date. The 2021 Debentures that are redeemed in connection with the Redemption will cease to bear interest from and after the Redemption Date.

Formal notice of redemption has been delivered to the registered holder of the 2021 Debentures in accordance with the terms of the Indenture. Chemtrade intends to fund the redemption of the 2021 Debentures through cash on hand.

The Fund also announced today that following the successful upsizing and completion of the Fund’s public offering of $86.25 million aggregate principal amount of 8.50% convertible unsecured subordinated debentures due September 30, 2025 (“2025 Debentures”) (including an additional $11.25 million principal amount of 2025 Debentures issued pursuant to the exercise in full of the over allotment option granted to the syndicate of underwriters), Chemtrade has determined not to proceed with its previously announced intention to establish an “at-the-market” equity program at this time.

About Chemtrade

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite, and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, potassium chloride, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.

Caution Regarding Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking information 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 information in this news release include statements with respect to the Redemption, including expected timing and the redemption price for the 2021 Debentures to be redeemed thereof. 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: the timing and completion of the Redemption; there being no significant disruptions affecting the operations of the Fund and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the timely receipt of required regulatory approvals; and global economic performance.

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 information contained herein are expressly qualified in their entirety by this cautionary statement.

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

Contacts

Mark Davis
President & Chief Executive Officer

(416) 496-4176

Rohit Bhardwaj
Vice-President, Finance & Chief Financial Officer

(416) 496-4177

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