The Toronto Stock Exchange reports that Chemtrade Logistics Income Fund's 6.50 per cent convertible unsecured subordinated debentures will be listed at 5:01 p.m. on Sept. 30, 2019, for trading at the open on Oct. 1, 2019. According to the TSX, the debentures will trade under the symbol CHE.DB.E and Cusip No. 16387P AJ 2.
As stated in its short form prospectus dated Sept. 23, 2019, the fund will issue $100-million principal amount of debentures, in the minimum principal amount of $1,000 each, in a public offering. It expects to close the offering before the open on Oct. 1, 2019.
According to the TSX, the debentures will mature on Oct. 31, 2026, and will pay interest semi-annually in arrears on April 30 and Oct. 31 in each year, at 6.50 per cent per year. Assuming the offering closes on Oct. 1, 2019, the initial interest payment of $37.70 per $1,000 principal amount will be made on April 30, 2020.
The TSX reports that the debentures will be convertible at the option of the debentureholders, at any time before 4 p.m. Toronto time on the earlier of: (i) the maturity date; or (ii) if called for redemption, the business day immediately preceding the date specified by the company for redemption of the debentures, at $15.80 per unit. This conversion price represents a conversion rate of approximately 63.2911 units per $1,000 principal amount of debentures.
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