Mr. Mark Davis reports
CHEMTRADE LOGISTICS INCOME FUND DECLARES MARCH 2020 DISTRIBUTION AND REDUCES DISTRIBUTION RATE
Chemtrade Logistics Income Fund has declared a cash distribution of five cents per unit for the month of March, 2020, payable on April 30, 2020, to unitholders of record at the close of business on March 31, 2020.
Holders of units who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions of income by the fund.
Chemtrade reviews its distribution policy on a continuing basis. Chemtrade has paid a monthly distribution of 10 cents per unit since the beginning of 2007. Given the current uncertainty in the global economy and reduced visibility into the future, Chemtrade believes that it is prudent to reduce its monthly distributions by 50 per cent. To date, the current economic conditions have not had a material impact on Chemtrade's business or on the assumptions underpinning Chemtrade's 2020 earnings guidance, which was issued in January, 2020. However, the longer these circumstances persist the higher is the risk to our underlying assumptions.
Mark Davis, president and chief executive officer, said: "While we continue to believe that our distribution is sustainable in normal times; these are not normal times. In times like these, financial prudence is essential. Accordingly, to protect our balance sheet and maintain financial flexibility, we have reduced our monthly distribution to five cents per unit. We intend to use excess cash flow to strengthen our balance sheet by reducing leverage. We will continue to evaluate our distribution policy as economic conditions stabilize and as our business performance warrants."
About Chemtrade Logistics Income Fund
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world.
We seek Safe Harbor.
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