CHEMTRADE LOGISTICS ANNOUNCES CLOSING OF OFFERING OF $149.5 MILLION SUBSCRIPTION RECEIPTS INCLUDING OVER-ALLOTMENT OPTION

Proceeds and Senior Credit Facilities to Fund Marsulex Acquisition

TORONTO, May 26, 2011 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade") announced today that it has completed its previously announced offering of Subscription Receipts (TSX: CHE.R) at a price of $13.60 per Subscription Receipt (the "Offering"). The Offering was undertaken on a bought deal basis by a syndicate of underwriters co-led by Scotia Capital and BMO Capital Markets.  On closing, Chemtrade issued 10.99 million Subscription Receipts, inclusive of 1.43 million Subscription Receipts issued pursuant to the exercise in full of the underwriters' over-allotment option, resulting in aggregate gross proceeds of $149.5 million.

The proceeds of the Offering, combined with senior secured credit facilities will be used to fund the previously-announced acquisition of all of the businesses of Marsulex Inc. (other than Marsulex Environmental Technologies Corporation) for an aggregate transaction value of $419.5 million. The acquisition, which is subject to approval by at least 66 2/3% of Marsulex shareholders voting in person or by proxy at a special meeting to be held on June 22, 2011, and satisfaction of other customary closing conditions, is expected to close in late June. At that time the Subscription Receipts are exchangeable on a one-for-one basis for units of Chemtrade without payment of additional consideration or further action.

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, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute "forward-looking" statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue", estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of Chemtrade, including, but not limited to:

  • the use to be made of the proceeds of the Offering and credit facilities;
  • the ability of Chemtrade to close the acquisition and the date thereof.

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

SOURCE Chemtrade Logistics Income Fund

For further information:

Mark Davis      Rohit Bhardwaj
President and CEO     Vice President Finance & CFO
Tel: (416) 496-4176     Tel: (416) 496-4177

 


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